The service will enable customers to create Visa pre-paid accounts on their mobile phones that can be loaded with funds from a bank account or a credit or debit card.

Customers can then use the account to pay for purchases made online. They will also be able to use their mobile phone to send the funds to a third party.

Visa says it expects the service to be popular with the youth market and for gifts.

New functionality will be added to the service in the future, including the ability to check balances and recent transactions and person-to-person fund transfer services.

Commenting on the initiative, Sandra Alzetta, SVP, innovation and acceptance, Visa Europe, says: "Mobile technologies will be the key driver of innovation in payments, creating opportunities for exciting new propositions for customers and tangible value creation for providers."

Monitise said in September that it was working with banking partners on the development of secure online shopping services for 'cardholder not present' transactions.