Following the success of its contactless communication system, Barclaycard OnePulse has teamed up with Nokia to test the practicality of mobile payment in London.

Early next year, barclaycard customers will get compatible Nokia handsets so they can initiate mobile transactions in about 1,000 shops located in London as well as access to transportation.



As security measures, all transactions are recorded in the cellphone to monitor any fraudulent acts and prevent users from over-shopping.

Privacy was the main obstacle in implementing this mobile payment trial. Fortunately, Nokia mobile payment system manager Richard Humbach said it is already out of the way:

The mobile-phone operators wanted to see the transaction details, because they felt they had a right to see data flowing over their networks. The payment community would not allow that, and now the networks have had to accept that they are just transferring encrypted data between the user and the card issuers.

Humbach also projects mass-market acceptance of this technology is around 2010 to 2011. It goes without saying that the success of this test will quickly lead to nationwide roll out.

Via the Observer