O2 has partnered with NatWest bank for the launch of O2 Money to provide prepaid credit cards.
The first products from O2 Money will be two Visa prepaid cards which will be available to O2 customers.
Customers will receive balance updates on their mobile and will be able to choose between the Cash Manager card which works as a typical prepaid credit card or the Load & Go card which is available to users as young as 13.
The Load & Go card is not accepted on certain websites such as gambling sites and applicants under 16 who will have a letter sent to parents informing them of the application.
O2 chief executive Ronan Dunne said: “The strength of our brand and relationship with our customers gives us the ideal opportunity to take O2 into a completely new market.
“By bringing a fresh, transparent and customer-focused approach to prepaid cards, we plan to drive this market and take a significant share.
“O2 has a strong and successful track record of innovation and O2 Money will represent a launch pad into a wide range of mobile banking services.”
NatWest managing director of marketing and innovation Helen Page said: “We believe these groundbreaking O2 Money cards will really raise the bar, in terms of the added value customers will get from the interaction with their mobile phone.
“These cash cards, delivered in partnership with O2, are the first step on the road towards a more advanced mobile banking service, and the closer alignment between mobile phones and payment technology.”