UK 4G mobile network operator EE has announced it will be launching a new NFC mobile payments service later this month, in partnership with MasterCard.

The Cash on Tap service will offer customers the ability to make NFC payments of up to £20 (US$30) and will be accepted at over 230,000 outlets nationwide, including McDonald's, Boots and bakery chain Greggs.

To use the service, customers download the EE Tap Wallet from the Google Play Store, select the Cash on Tap app from the wallet and complete the set-up process.

EE will be giving £10 credit to all eligible customers who use the prepaid service. They will get £5 when they first activate the Cash on Tap app and then another £5 when they add money from any UK credit or debit card into their Cash on Tap account for the first time.

The network is pushing the convenience of mobile payments, pointing out that "it doesn't even matter if your phone's switched off, Cash on Tap will still work."

According to the carrier, mobile contactless payments from EE and MasterCard have been developed and rigorously tested to ensure customer's transactions and personal data will be protected and secure. "Preventing fraud is very important to us," says EE. "You'll be covered for all purchases once you've notified us that your phone has been lost or stolen. We'll also refund any purchases made before this point after an excess of £50."

The SIM-based payments app is PIN protected and allows users to monitor the payments they have made and access their online Cash on Tap account from their mobile phone.

EE said: "Cash on Tap is the first of our contactless mobile services, but there's loads more in the pipeline. Tickets on tap, loyalty cards on tap... there'll be lots more to tap in the future. Watch this space."

At launch on 17 July the service will be available on EE-supplied Samsung Galaxy S4, Sony Xperia SP and Samsung Galaxy S3 LTE handsets, with more devices set to be added in the coming months.

Everything Everywhere is part of the Weve joint venture, which is expected to launch an NFC mobile payments service in 2014. Orange, which combined with T-Mobile in the UK to form EE in 2010, has offered NFC payments under the Quick Tap brand since May 2011.