O2 plans to introduce a so-called mobile wallet, using near field communications (NFC) to make payments.
The communications operator is planning to apply for an e-money licence from the Financial Services Authority (FSA) so it can start offering the NFC technology.
It is believed O2 will bring out its mobile wallet app in the second half of 2011.
An O2 spokesperson said the company would give full details nearer the time, but revealed it planned to offer a range of services as part of this, including mobile payments, person-to-person money transfer and airtime top ups.
They said O2 will be making a number of moves to prepare for the launch.
"Firstly we are recruiting a number of financial services experts to the O2 Money team," the spokesperson said.
"Secondly we will be partnering with specialised payments and processing partners. And thirdly we will be submitting an application for an e-money license which will allow us to hold funds on our customers' behalves and facilitate payments."
The news comes shortly after Everything Everywhere the Orange and T-Mobile partnership announced its own NFC-enabled SIM cards in a deal with Barclaycard.
The Google Nexus S features an integrated NFC chip, making it one of the only smartphones to feature such technology.
Apple's next iPhone is widely expected to feature NFC technology as well.
-
What does modern security success look like for financial services?Sponsored As financial institutions grapple with evolving cyber threats, intensifying regulations, and the limitations of ageing IT infrastructure, the need for a resilient and forward-thinking security strategy has never been greater
-
Yes, legal AI. But what can you actually do with it? Let’s take a look…Sponsored Legal AI is a knowledge multiplier that can accelerate research, sharpen insights, and organize information, provided legal teams have confidence in its transparent and auditable application
-
Best satnavs for 2017Vs Apps vs hardware - which satnavs will do the best job of getting you from A to B?
-
UK government wants Google to trial driverless cars in LondonNews News follows government's £20m investment in autonomous car projects
-
Mobile phone operators hike up access chargesNews The price increase affects calls to 084, 087, 09 and 118 numbers
-
BT returns to mobile market with super-cheap 4GNews But can the telco muscle in on mobile without offering top-end consumer phones?
-
TfL trials interactive bus stop technology in Regent StreetNews TfL teams up with Clear Channel UK to bring real-time, interactive travel information to tourists and commuters.
-
EU wants mobile devices to have universal chargerNews Manufacturers including Apple could be forced into using a common standard.
-
Dell ties up with O2 to punt out-of-box mobile connectivityNews NetReady PAYG Sim pre-installed in laptops and tablets
-
O2 splits tariffs to allow early phone upgradesNews Mobile operator to allow customers to get the new phone they want without ditching airtime contract.
