UK-based operator O2 has launched a mobile wallet service as it attempts to tempt the increasing number of people who are using their phones for banking and shopping.

The O2 wallet contains four key elements, three of which are focused on banking facilities.

A message service allows users to make transfers of up to €600 daily from their device.

A mobile wallet service enables customers’ debit and credit cards to be digitised for m-payments; money can also be transferred into a wallet account.

An account card – available in both physical and virtual formats and based on Visa technology – enables those users who want to limit what they spend by prepaying money onto the card.

For shoppers, there is barcode and search engine function that compares the prices of millions of branded goods from more than 100 online retailers plus a discounts and deals service.

James Le Brocq, managing director at O2 Money, claimed it will “transform the way people manage their finances and spend money”.

O2 said the service, which is also available to non-O2 customers over the web, is compatible with the majority of smartphones as well as iPads.

British consumers will spend €5.5 billion on m-commerce in the next 12 months, the operator added.