O2 Wallet is due to close on 31 March 2014.
The digital wallet app, first launched in April 2012, allows users to make and receive payments using just a phone number regardless of their mobile network or bank provider. It works similarly to a pre-paid card, whereby users top up their O2 Wallet balance with money by debit card or by cash within various retail locations.
O2 have cited the changing markets and customer behaviours as reasons for the closure.
“So, we’ve decided to close the O2 Wallet to give us time to look into new and better ways to help people manage their money on the move, both in the UK and abroad.”
It is understood that O2 will be bringing out new payment products in future.