Vodafone to launch mobile wallet service in UK

British mobile group Vodafone is set to launch a mobile wallet service in the UK in October 2014.

British mobile group Vodafone is set to launch a mobile wallet service in the UK in October 2014.

The mobile group in partnership with Visa has developed its own service that will work with a special SIM card embedded with NFC (near field communication) technology that can be used to swipe for payments at contactless tills, reports Financial Times.

Vodafone is working with third-party loyalty card companies such as Nectar, and will open up the technology to banks to use with their own payment services.

The new service will be catered to users in the UK, having previously introduced similar services in Italy, Germany, Spain and the Netherlands. The new service can also be used to pay for travel on London Underground and will allow person-to-person payments between customers, reports Financial Times.

Alix Pryde, head of innovation at Vodafone UK, said: “The pieces are falling into place. There are now the devices, the contactless payments and increasingly the consumer behaviour to make this a success.”

Mark Ritzmann, head of m-commerce, said that the usage would be restricted to payments below £25 for regulatory reasons, although he added that the company hoped to introduce a PIN-protected way to make larger payments in time. “It will start to replace the leather wallet,” he added.