Telefonica O2 UK Ltd. is shutting down the Near Field Communication-based mobile wallet it launched for consumers in the U.K. nearly three years ago.

The mobile operator announced this week on the O2 Money website that it intends to discontinue the O2 Wallet at the end of March and concentrate on other services.

One of those other services is likely to be Weve, the joint venture in which O2 also participates. Weve was originally known as Project Oscar in the U.K., and changed its name when it shifted its focus to marketing from payments. The venture has indicated that it still plans to support payments under its new model.

The O2 wallet supports person-to-person payments and bar code scanning for price comparison. It offers daily discounts from major retailers such as Debenhams, Comet, Sainsbury's Direct, and Tesco Direct.

In addition, the wallet allows consumers to make debit card payments and cash transfers, and came with a Visa prepaid card for online and brick-and-mortar shopping.

Telefonica O2 says much has changed since it launched the O2 Wallet as "one of the first mobile wallets around" and the company has decided to "look into new and better ways to help people manage their money on the move, both in the UK and abroad," according to the statement on its website. 

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