Powa Technologies' instant phone payment

The London-based start-up Powa Technologies will today launch what it claims is a unique mobile app that allows people to accept credit and debit card payments on their phone.

The chairman and chief executive Dan Wagner said the service, called mPowa, means a user can receive payments on the go "in a way never before seen in Britain".

Once the free app is downloaded by the customer and plugged into a separate card reader device on the phone, via the headphone socket or wireless Bluetooth, the card is checked and the user can type in their PIN.

Mr Wagner said mPowa will enable businesses to take payments immediately and reduce bad debt. The company will take a 25p or a 0.25 per cent fee charged on each transaction. Receipts will be sent by email or SMS.