­O2 UK has announced a new Mobile Point of Sale service (mPOS), with Visa Europe and Global Payments which allows retailers to accept credit and debit card payments via mobile technology.

A chip & PIN Pad accessory is connected to the retailer's existing Smartphone or tablet via Bluetooth. A free eMerit app downloaded on the mobile or tablet manages the card payment transaction, and then sends the customer a receipt via email and/or SMS if required.

It's available on Android and BlackBerry now, with the iOS version coming soon.

MD of O2 Money, James le Brocq said: "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."

"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."