Mobile network operator Everything Everywhere is partnering with Barclaycard to roll out a payment system later this year that uses mobile phones.
The system will use near field communications (NFC), short-range wireless technology, and work in a similar way to contactless payments cards already accepted by retailers such as Pret a Manger, Little Chef, and the National Trust.
More services are expected to roll out in the run up to the 2012 Olympics, with transactions, transport and tickets being available via contactless technology, according to the BBC.
Everything Everywhere claims studies show that people are more likely to forget their wallets than their mobile phones, and like not having to carry cash. In Japan and Korea, mobile phones have been equipped with wireless payment chips for some years.
According to US reports, Apple plans to include NFC chips in coming versions of the iPhone and iPad for making contactless payments.
Everything Everywhere is the company formed by the merger of the Orange and T-Mobile networks.