Coles has launched the Coles Mastercard Pay Tag as part of a consumer trial of its contactless payment technology.

The trial will enable a sample group of 5,000 customers to pay with their credit card and earn flybuys points by attaching a Coles Pay Tag ‘sticker’ to any smartphone.

The launch comes after Coles saw contactless payments through the Mastercard PayPass system in its store over the last year increase by over 70 per cent.

Coles finance director Rob Scott said there’s an opportunity for the company to deliver an innovative financial service to its customers.

“Our customers are constantly looking for ways to simplify their lives, save time and effectively manage their finances. The new Coles Pay Tag is set to do just that,” he said

The Pay Tag will be accepted in Coles, Coles Express and in other retail locations that accept Mastercard Paypass.

The tag utilises the same security features as the Mastercard Paypass technology, including The Falcon fraud management system and in-built security chip.

An app to work in conjunction with the Tag will be launched early next year for iPhone and Andorid devices. The App will make allow customers to view their flybuys rewards point and manage their credit card easier.