Mobile operator O2 has announced it will no longer support its mobile wallet after 31 March and plans to invest in alternative m-commerce initiatives.
O2 launched its mobile wallet, which allowed users to transfer up to £500 via text message, two years ago.
An O2 statement said: "We have taken the decision to withdraw our O2 Wallet product in the UK. Since its launch in April 2012, there have been a number of developments in the financial services sector and also within Telefónica. Mobile payment technology remains an important part of our global strategy and we intend to re-invest in other m-commerce opportunities in the future.”
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Telefonica, of which O2 is part of, has been investing in alternative m-commerce initiatives since the launch of its mobile wallet. It has signed a global deal with Monetise, set up a the joint with Santander and La Caixa banks in Spain, and launched Weve in the UK, a joint venture with EE and Vodafone.
O2 said customers using the wallet will be contacted this month and all outstanding O2 Money account balances will be refunded by the end of April 2014.