Mobile network Orange has teamed up with Barclaycard to launch a new mobile phone payment system that could revolutionise the way products and services are bought in the UK. Through Orange and Barclaycard's system, customers will be able to use their mobile phones to purchase goods and services from retailers using contactless technology, with payment capabilities powered by MasterCard, simply by waving a handset across a reader.

With a combined consumer base of over 28 million people, Orange and Barclaycard hope to expand their partnership to include other services, including ticketing, rewards schemes and transport. The joint venture will also pave the way for market-leading mobile alerts, servicing capabilities and new banking applications. Tom Alexander, CEO of Orange UK, said: "Today you pay for things by cash or on your credit card. Tomorrow, you’ll use your mobile to buy the things you want, whether that’s on the high street or the internet. "These are the services that will change the way we live and work for the better, and are evolving the way we interact with each other and the way that companies serve us."

Antony Jenkins, CEO of Barclaycard, echoed this optimism, commenting: "I believe that all our UK customers will be able to use their mobile phones to pay for everyday items within three years." Customers will be notified of the benefits of the partnership in the next few months, as Orange and Barclaycard finalise their marketing campaign. Mobile phones are increasingly becoming part of the way people shop across the world.

The T-Mobile G1 mobile phone, for example, comes with a Barcode Scanner application that allows its camera to scan barcodes on items - like books or CDs - and then uses its built-in GPS to indicate the cheapest place to buy that item in the local area.