Orange is to launch its first contactless phone this year, head of third party services Steve Ricketts told the Travolution Summit this week.
The phone will allow customers to swipe their phones through a scanner to make payments. It is understood initally the system will only be available for payments under £10 before expanding to more expensive items.
However Ricketts said the contactless phone would not become mass market for another three to five years.
Orange and Barclaycard launched a contactless credit card earlier this year. These allow users to make payments of a few pounds by swiping them over a card reader.
More than 20,000 retailers now have contactless pay points in store, according to Orange.
Ricketts said the Orange Wednesday two-for-one cinema promotion, which has been running for five years, has made Wednesday the most popular day to go to the cinema other than the weekend. “It has shown how effective mobile marketing can be,” he said.
A total of 87% of mobile media users use it at home, even though they have PCs. He said: “It might be that the family is using the computer or it is quicker to use your handheld.”
Some 35% of mobile media users have engaged in mobile commerce.