Orange launches first pay-by-mobile system

In what it's claimed could be the future of high street payments, the 'Quick Tap' system, unveiled today, enables customers to make purchases up to £15 by tapping their handset against a contactless reader.

Payments are accepted at 50,000 stores nationwide including Eat, Little Chef McDonald's, Pret a Manger, Subway, Wembley Arena and Wilkinson.

Only Orange customers with its new Samsung Tocco Quick Tap mobile can use the system, although Orange says more handsets are expected to follow over the next few months.

You also need either a Barclaycard, Barclays debit or Orange Credit Card to spend via a mobile.

Bear in mind these cards may not be the cheapest to use.

How does it work?

You must first transfer up to £100 a time from your account to a special account on your mobile, which can hold a maximum of £150 at any time.

When you make a payment the money comes from that mobile account. However, Barclays, Barclaycard or Orange is liable for the money if your phone is stolen or anything else goes wrong, under normal banking guarantees.

Payments are made by tapping the phone against a contactless reader in-store, with users having the option to enter a Pin on their handset before each transaction.

The principle is the same as the London Oyster system for travel.

Orange vice presidentPippa Dunn says: "Orange Quick Tap is the first of its kind. It's going to start a revolution in the way we pay for things on the high street."