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Digital cash 2.0

May 28 2008

Before contactless credit cards have even entered our wallets, it looks as though they may have been superseded. O2 has linked up with Transport for London, Barclaycard, Visa Europe and Nokia for a trial of its new initiative, the O2 Wallet.

Five hundred travellers have been issued with Nokia phones which double as a travel pass and payment system that can be used to make small value payments of up to £10.

Contactless payment terminals have been installed in 1,000 shops and cafes in the City of London, which means users can travel on public transport or buy a coffee simply by touching the phone to a reader.

According to O2, personal information will sit on your SIM card, allowing you to throw your old leather wallet into a drawer at home, never to be used again. This has raised concern over security, so PIN protection could be incorporated for larger transactions.

A full launch of the service is expected by the end of 2008.

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