Australian supermarket chain Coles is testing a contactless payment sticker that attaches to a customer's mobile phone. "By simply attaching the 'sticker' tag to a mobile phone, Coles MasterCard customers will no longer have to take their wallet into store when making contactless purchases," the retailer says.

The pilot will enable a sample group of 5,000 customers to use the new Coles Pay Tags to make purchases and earn Flybuys loyalty points. It follows an NFC payments and rewards trial conducted earlier this year and an increase of more than 70% in contactless payments in Coles stores over the last twelve months.

"Our customers are constantly looking for ways to simplify their lives, save time and effectively manage their finances," says Rob Scott, Coles' finance director. "The new Coles Pay Tag is set to do just that."

"We believe there is a significant opportunity for Coles to deliver Australian customers further innovation in financial services, as we continue to look for new ways to deliver better value every day," he added.

An app designed to work in conjunction with the Coles MasterCard Pay Tag is also to be introduced early next year for iPhone and Android devices. "The App will make earning Flybuys rewards and responsibly managing your credit card easy — no matter where you are," the supermarket says.