Mobile phones to become London's common currency

London shoppers will soon be able to leave their cash at home and use their mobile phones to get on the bus and tube, pay for coffee and put big-ticket items on credit. The mobiles will contain the same security as chip and Pin cards, combined with the contactless communication system used in Transport for London's Oyster travel card. The Sunday Observer reports.

"Early next year Barclaycard will run a trial of the technology on the back of its new 'OnePulse' contactless card, which was launched in September. OnePulse cards are combined credit cards and Oyster cards, and also allow small purchases (under £10) to be made without entering a Pin.

About 1,000 retailers in the capital are already equipped with the contactless terminals for OnePulse, so putting the technology into mobile phones will not require them to install yet more expensive kit. Several hundred Barclaycard customers will be issued with compatible phones supplied by Nokia, which has been pushing the technology for several years.

... The phone will also record every transaction, so fraudulent use will be immediately apparent. If the phone is lost or stolen, it can be immobilised remotely. Visa will also offer to alert cardholders by text if one of their cards is being used in a suspicious way. Contactless payments by mobile phone could also allay fears that criminals could clone cards by using portable readers and standing next to card users."

emily | 9:10 PM | SMS and Banking |
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