Mobile network operator O2 is offering ‘O2 Money’, the first cash-card service of its kind in the UK. The service is being offered in partnership with the National Westminster bank. Studies show that there is a lot of potential in the ‘mobile payments’ market, which could be worth $600 billion per year by the year 2013.
To take advantage of an emerging market for mobile-money, O2 has produced two kinds of Visa pre-paid cards. The ‘Cash Manager’ is for adults, while teenagers can use the ‘Load and Go.’ The O2 Money Cash Manager is aimed at customers who want to take control of their spending. Customers can transfer money onto the card, which can be used in shops and online. The ‘Load & Go’ is marketed towards teenagers; parents can also transfer money to the card. Teenagers will not be able to use the card for products and services reserved for adults.
Subscribers will be notified about the state of their accounts through text messages. In addition, the debit cards can be loaded online and used in shops accepting Visa. O2 will be providing free cards to subscribers.
O2 CEO Ronan Dunne commented that the company is planning to be a leader in the market. “There is tough competition in the telecom industry in the UK and Visa pre-paid cards are among the services that can give O2 an advantage.”
Regarding the product, NatWest’s marketing executive Helen Page commented on the importance of helping customers in handling their money and expenses. She also described how this aim can be achieved with O2 Money.
