O2 makes first move into payments

Hot on the heels of Orange, O2 are branching out into payments. The mobile phone network provider has launched a new Facebook app which allows people to top up their phone through the social networking site. Pre-paid customers will be able to store credit card details on the secure app which thye can then use for top-ups.

When a transaction has been completed confirmation will be sent to the user in the form of a text message. With the huge popularity of Facebook, O2 believe their customers will appreciate not having to log out of the site in order to process transactions.

O2's head of social, Alex Permain, said:

"We decided to launch with a payment mechanism that people are already used to and confident with [in terms of security]. We'll take this a lot further if it proves successful."

The app seems to be an early step towards the mobile wallet scheme which O2 announced they were developing earlier this year.