More Brits may use mobiles to pay for items rather than credit cards

More Brits may choose to use their mobiles to make payments rather than their credit cards or cash over the next few years.

That is because the Payments Council has launched a nationwide campaign to encourage consumers to use their mobiles to pay for goods and services.

Banks and building societies will also be given advice on how to deliver mobile payments for their customers.

The initiative will focus on creating mobile apps that allow consumers to transfer money from their current account into an account held by a business or another individual.

It differs from other mobile payments, which involve in-card technology being added to the phone so that the device can act as a contactless credit card.

Gary Hocking, Payments Council acting chief executive, said: "It is still early days in this project but we want to explore how a mobile phone can help customers make a payment from one account to another.

"Of course security is a priority for us, and the work being done to bring this technology to life will focus on this. This industry-wide project will help deliver a way of sending money that is safe and easy for consumers."

Initial research by the firm has found that 23 per cent of consumers would be willing to make payments in this way.

A recent survey by Ingenico found that the majority of Brits are reluctant to switch from traditional forms of payment to contactless debit or credit cards.

The firm found that just 13 per cent of consumers have ever owned a contactless-enabled credit card and only five per cent have used this method to make a payment.

Fear over the security of making payments in this way was one of the main reasons why consumers are wary of making contactless payments.

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