The chief executive told Huffington Post UK that he is in talks with the UK's five biggest banks and is hopeful that a white-labelling deal, which will see his gadget rolled out by a bank to their business customers, will be live in the first half of 2013.

"We're looking to work with existing retailers who already take payments, but unlike a number of companies who want to provide a solution for businesses that don't currently use card payments, we want to help them start using mobile devices," Wagner explained.

"We're talking about attracting trillions in payment, we're going after the big merchants who perhaps aren't able to offer mobile payments" Wagner said.

"Think of a plumber coming over to install a washing machine, or a pizza delivery company coming to your door with food - instead of handing over an invoice or taking payment over the phone, they can take it on their mobile at your door."

MPowa was launched in 2011 and, unlike its American forefather Square, takes chip and pin (rather than swipe) payments. It uses Wagner's earlier venture Powa as an ecommerce platform for processing.

Commenting on the news is Tom Dunne, Operations Director at ECR Systems, offering EPOS and till systems for hospitality and retail stores. He said;

"The rise of mobile phone payments is no surprise. The growth in smartphone usage and technology over the past five years has intensified exponentially and created a wealth of new opportunities which can benefit consumers and the level of service they experience from retailers. Mobile payments - whether on a phone or terminal – are still in their infancy though, especially in the retail sector.

"The mPowa gadget is one small part of the evolution in how we purchase goods. Let’s not forget there are already a number of units 'out there' that can process a payment on a smart phone such as the 'Square' or other Bluetooth devices, so there is clearly an appetite for this technology. But, whilst mobile payments do offer retailers the ability to offer a better service to their customers – reduced queue times, faster transaction times and added convenience – it’s a device more suitable to small retailers and business than it is big business.

"For large high-street retailers, it’s hard to see how it will be rolled out on a much larger scale because despite the convenience, customers are not ready to buy into a paperless receipt solution. True, it does work for Apple, but for customers wanting to purchase their groceries or the latest fashions there is still a strong association with chip and pin and the need for a receipt, so Visa and Mastercard payments will remain a method of payment for the foreseeable future. That will change, but certainly not within the next five years. Mobile payments will undoubtedly increase, but it will be sometime before we see widespread penetration.

"The small business market is a little different, because the success of those businesses can be made or broken by the quality of service customers receive. For mobile businesses like your plumber, electrician or door-to-door sales person like the AA or your Avon representative, mobile payments are incredibly valuable. But mobile phone payments are just one option. The ECR XPDA is another, it’s still mobile, but it is one small device equipped with a built-in scanner, printer and on-board chip and pin pad.

So why is this better than mobile phone payments?

"It all boils down to customer service and customer experience" says Tom. "Mobile phone payments are fast and easy to process, but there are concerns over security and the legitimacy of payments. Customers still like receiving that printed receipt, especially when they are dealing with a sole trader or small business. It provides them with security, and helps legitimise the transaction. You’re instantly given a printed record that the transaction has been processed successfully. For these businesses they can get an instant live update of the sales that are being processed and evaluate those transactions against their levels of stock.

"Ultimately it comes down to tastes and the types of transactions you are making. However, whilst the way we buy goods and process transactions is evolving and moving towards mobile, it’s important to define what we mean by mobile. Mobile phone payments undeniably have their merits, but they do cater to a specific niche set of transactions. The future of payments is a combination of mobile phones and mobile terminals which can process transactions both online and offline (where mobile phone signals are unavailable) and deliver a secure and fully rounded experience for the customer."

To read the original article from Dan Wagner, click here