O2 announced the launch of UK's first large scale pilot of NFC (Near Field Communications) technology on mobile phones. The trial - performed in partnership with Transport for London, TranSys, Barclaycard, Visa Europe, Nokia and AEG - has begun on the 28th of November 2007 and will run for six months until the end of May 2008.

Over 500 people will take part in the trial. Each participant will be given a Nokia 6131 NFC handset installed with the O2 Wallet application which, just like a normal wallet, will hold various virtual cards, including Oyster and Barclaycard. Trialists will be able to test different services in London, such as making purchases and travelling on London's public transport system.

The Oyster card functionality on the phone will enable participants to pay for travel on the tube, buses and trams across London, by touching their handset on Oyster ticket machines in tube stations or at Oyster ticket stops. If a trialist's phone rings, they can still answer the call and continue to make a transaction. A call or text message will not interfere with the NFC service.

Participants will also be able to touch their NFC-enabled handsets on smart posters, which contain embedded tags that serve as shortcuts for services enabled through the mobile. Once the user taps the poster with the handset, they will automatically dial a number, send a text message or be sent a shortcut to a mobile Internet website with more information about the subject on the poster.

The trial will also examine mobile payments using the Barclaycard payment application in the O2 Wallet. Participants will be able to use the contactless payment readers around London to purchase goods. They will simply need to tap their phones on the secure reader and transactions will be completed in a matter of seconds. Besides making payments, trialists will also be able to use the phones to check available funds and to locate retailers close to them that accept contactless payments, including Books Etc, Chop'd, Coffee Republic, EAT, Krispy Kreme, Threshers and YO! Sushi.

O2 and its partners in the trial are looking to extend the service even more in 2008, possible developments including PIN capability and reloadable / credit funds capability. As Cath Keers, Customer Director at O2 UK, stated: "the trial is just the start of this journey. For this to work we will need the whole ecosystem to come together which means mobile operators, banks and retailers all working together to fulfill a shared vision. If we get this right we can place the UK at the forefront of technology innovation."