Coles commences Pay Tag contactless payment trial

Supermarket chain adds itself to the list of companies that want to put stickers on your phone case.

Retail giant Coles has announced that it is beginning a trial with 5000 customers of Mastercard's Pay Tag technology. The Pay Tag consists of a sticker that is affixed to a phone and is used in lieu of a credit card at PayPass terminal.

Coles plans to roll out an accompanying management app early next year for iPhone and Android devices, however the company says that the type of phone that a user owns is not a barrier to using the Pay Tag.

"It does not matter which phone you own, the Coles Pay Tag will make [using] the PayPass feature of the Coles MasterCard card easier than ever before," said Rob Scott, Coles Finance Director, in a statement. "We are excited to now offer this new technology to our customers."

The company said that it had seen contactless payments rise by 70 percent over the past year.

The Commonwealth Bank of Australia (CBA) earlier today also announced support for Pay Tag when used in conjunction with iOS devices, Android devices would have the ability to use the device's in-built secure element, and Windows Phone devices would be unable to use the payment functionality. CBA's support for Pay Tag was part of a revamping of its CommBank app to include functionality from its Kaching payment app.

Users of the new CommBank app that wish to use Pay Tag will have to pay a fee of AU$2.99.