Barclaycard to support mobile phone payments

Mobile phones will be used for payments

Barclaycard has signed a deal with Orange to develop mobile-based financial and payment services.

The partnership will allow Barclaycard customers to pay for goods and services by waving contactless-enabled mobile phones against a reader with built-in technology provided by MasterCard.

It is expected that the service offering will eventually also include ticketing, transport and rewards and the companies claim that a number of new initiatives will be launched over the next few months.

“This partnership brings together a leader in communications and the UK’s leading payments brand with the aim of revolutionising the way people pay,” said Barclaycard chief executive Antony Jenkins.

“There has been a lot of talk about mobile payments and now it’s going to become a reality for our customers because of Barclaycard’s commitment to contactless technology and the coming together of two dynamic and imaginative organisations,” said Jenkins.

“I believe that all our UK customers will be able to use their mobile phones to pay for everyday items within three years.”

According to a study by Informa Telecoms & Media, advances in technology will drive a 12-fold increase in mobile transaction values to 300 billion transactions, the equivalent of more than £600bn by 2013, driven mainly by demand in the financial services sector.