O2 introduces prepaid Visa card

THE FEAR many have of losing the run of themselves and running up huge bills on their credit cards may be eased with 02’s introduction of a prepaid money card that allows people to load money onto a card embossed with the Visa label and use it like a more traditional flexible friend.

The company heralded its expansion into the financial services market as a step towards the mobile e-wallet, which will allow consumers use their phones to make purchases. While the company would not be drawn on precisely when mobile devices would replace credit and debit cards as the main vehicle for purchases, O2 Ireland’s new chief executive Stephen Shurrock said it would happen “sooner than we think”.

The company said it had carried out research suggesting that in these cash-strapped times nearly a third of people did not trust themselves with a credit card, while more than twice that number said they found it hard to keep track of change after breaking a €20 note.

The company says the card, which is selling in its outlets from today, will help people budget as they can only spend what they put onto the card. Customers can put anything from €20 to €350 per day onto it and use it in ATMs and anywhere that accepts Visa payments. The cards can be topped up online, in O2 retail store or in over 1,500 Payzone outlets.

“This first financial services product from O2 marks the start of the convergence of the mobile phone and the wallet, and firmly positions us at the forefront of this trend in Ireland,” Mr Shurrock said.

He said the card was primarily aimed at customers who no longer wanted or did not have a credit card “either because they don’t feel they will manage it well, or because they are not eligible for one”.

People will, however, have to spend something to get the card, which costs €4.99, and will have ongoing top-up costs of up to €2.99. The company said it had limited the daily top-up to €350 on advice from the UK financial regulator.