O2 is increasing its pay-out rates to retailers to encourage them to sign up to the operator's forthcoming mobile payments platform.
Charge to Mobile is set to launch later this year and allows consumers to make payments from their mobile online and have the purchases added to their mobile phone bill or deducted from their prepay account. O2 said the service will support higher value purchases of up to £30 and allow retailers to provide refunds to consumers. The payment option will be available automatically through participating retailers when it launches and consumers will not have to register.
The increase in pay-out rates means customers can now make purchases of a higher value from participating websites. Danny Barclay, head of interactive at O2 Media, said: 'This is a market where the key pieces of the jigsaw are starting to come together. Firstly, where mobile billing has been supported as an additional payment option, we have recently seen examples of merchant revenue increasing by over 200 per cent.
'We foresee further examples of this type of increase, particularly as internet usage through the mobile phone becomes more prevalent and we expect more and more merchants to take advantage of mobile billing in order to commercialise their goods and services.'
Last month, O2 was among the UK's four operators who signed a deal with MACH for it to provide them with a direct operator billing service.
Editor: Graeme Neill