London commuters could be using their phones as a travel pass and credit card by Christmas of next year if a test O2 Ltd. launched Wednesday for a mobile wallet succeeds.
The U.K. mobile phone operator said its mobile O2 Wallet allows commuters to use their phones instead of cash or travel permits when traveling on London's public transportation system and buying items such as coffee and newspapers.
O2 is working with Transport for London, the agency that oversees the city's public transportation system, along with Nokia Corp., Barclays PLC, and Visa Europe to test the near-field communications technology.
As part of the six-month test, 500 O2 customers are using Nokia handsets to gain entry to buses, trains, and the London Underground. The phones also function as a Barclaycard stored-value Visa card and can be used for purchases of less than about $21 at participating merchants, including Yo! Sushi, Coffee Republic, and Books Etc.
O2 says that if the test is successful, a larger mobile project could be launched late next year. Participants in the current test will be able to top off their O2 Wallet at the same 2,500 London ticket stops where Oyster transit cards can be reloaded.
