Barclaycard and wireless-network operator Everything Everywhere Ltd. this summer plan to launch the United Kingdom’s first contactless mobile-payment system, the companies announced Jan. 27.
Both parties are working with an unidentified handset manufacturer to place SIM cards inside mobile devices that would enable consumers to conduct payments at terminals with compatible readers. The companies are using the SIM card to support the contactless function because they claim it protects consumers’ transaction and....