O2 has teamed with Visa Europe and Global Payments to launch a Mobile Point of Sale service (mPOS), which will enable retailers to accept credit and debit card payments via mobile.

The system is comprised of a physical chip-&-PIN pad accessory, which connects to a smartphone or tablet via Bluetooth, and a free app, eMerit. Once the payment is taken, customers can be sent a receipt via email and SMS.

“At O2 we understand the importance of the mobile device in digital payments. Our new mPOS service has the ability to transform the revenues of smaller businesses and sole traders by offering their customers the ability to pay with Visa or MasterCard credit or debit cards as an alternative to cash,” said O2 Money MD James le Brocq. “mPOS is the latest addition to our portfolio of financial products and services which includes mobile insurance, tablet insurance and more recently, O2 Wallet, an innovative new service designed to digitise your physical wallet onto your mobile.”

The app is launching on Android and BlackBerry now, with iOS promised to follow shortly.