Mobile network, O2, has released an app for smartphones that allows users to transfer money via text messaging and store debit and credit card details, to speed up purchases from online stores.

O2 has also revealed it intends to allow users of the wallet app to make purchases with their near-field communication (NFC) phones. This would allow consumers to make contactless payments in shops on the high street through O2 Wallet.

According to the network provider, over 100 retailers have signed up to the project. They include Debenhams, Comet, Sainsbury's Direct and Tesco Direct. There are also discussions in place with a rail operator to allow consumers to purchase train tickets with the app.

James Le Brocq, O2 Money Managing Director said, "we believe it will transform the way people manage their finances and manage their money."

To combat security concerns he said that all personal details, pin codes, passwords and other financial data were held on remote central servers, rather than the phone itself.

Currently the service is free, but O2 has said it will charge 15p for each money message sent via text at some point in the future.