Mobile phone operator O2 is set to unveil a handset containing a built-in Barclaycard credit card and Oyster card for use on London’s transport system.

Mobile phone operator O2 is set to unveil a handset containing a built-in Barclaycard credit card and Oyster card for use on London’s transport system.

Londoners will be able to swipe the phone at tube stations and on buses to pay for their journey. Trials are expected early next year.

They will also be able to use the phone at retailers to pay for goods of less than£10 and use it as a normal credit card to buy more expensive items, according to the Evening Standard.

The Nokia handsets will contain the same security as Chip and PIN cards, combined with the contactless communication system used in Transport for London’s Oyster travel card.

Barclaycard offers Londoners the OnePulse contactless combined credit card and Oyster. It launched in September and allows customers to make purchases of less than£10 without entering a PIN.

About 1,000 retailers in the capital use contactless terminals for OnePulse, so the combined Nokia and Barclaycard credit card phone means they will not have to install additional equipment.

Richard Humbach, manager of mobile payment systems at Nokia, which developed the phone, said the move could lead to phones replacing wallets.

02 declined to comment.