O2 is launching a new mobile point of sale service in collaboration with Visa Europe and Global Payments. The new service will allow retailers to accept credit and debit card payments via mobile technology. The new venture hopes to build on the momentum that Square and PayPal are enjoying from their mobile payment services for businesses in North America, in the UK. O2′s new mobile payment service supports Visa, MasterCard or Maestro cards, with Amex expected to follow, allowing businesses to connect a low-cost PINpad chip and pin pad accessory to an Android and Blackberry phone or tablet via a Bluetooth connection.

The PINpad can be purchased for GBP150 upfront or GBP15 per month for 12 months. Thereafter businesses pay for the transactions processed, which are set at 2.95% for credit cards and GBP0.75 for debit cards.

There are plans to launch an iPad and iPhone version in the near future.