26/04/2012 06:37 BST | Updated 26/04/2012 07:21 BST

O2 Wallet To Send Up To £500 Between Mobile Phones

Owe your mate a few quid? There's no excuse not to pay up now. O2 Wallet allows you to send up to £500 to any UK mobile phone number.

The new money transfer system, announced yesterday, allows phone owners to securely transfers any amount between £1 to £500 quickly.

The O2 Wallet, which is available to download from 27 April, will become a credit card too, allowing you to pay for purchases with your phone.

For those worried about the security of such a service, the O2 Wallet won't touch your bank account, rather a separate O2 Wallet account will handle all transactions.

Thomas Husson, principal analyst with Forrester Research says: "We believe that the O2 Wallet is, for now, the most comprehensive mobile payment solution in the UK – available to a majority of smartphone owners, whether they are O2 customers or not."

The multi-faceted wallet also offers a prepaid Visa account and a physical contactless pre-paid Visa card.

It's not set up for near field communications (NFC) contactless payments yet, as the Barclayscard Paytag does.

The wallet also features a bar code scanner to compare in-store prices with more than 100 online stores, and daily deals from retailers like Debenhams, Comet, Sainsbury’s Direct and Tesco Direct.

Earlier this year at Mobile World Congress, NFC was one of the strongest emerging trends in mobile communication, and will soon become the norm in sharing funds and information.

Barclaycard PayTag was also launched earlier this month, which allows phones to make small payments of up to £20 by applying a special sticker to the back of the phone.

Husson adds: "Mobile digital wallets are emerging and going beyond payment. New technologies, mixing QR codes, apps, personal financial management software, NFC, and more, are combining to convert mobile handsets into digital wallets that combine not just payments but also receipts, vouchers, and loyalty."

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