The free IKO app - initially available for iOS and Android, with BlackBerry, Symbian, Java and Windows to follow - is the fourth generation in mobile banking, claims PKO.

To make payments in-store, customers key in a code generated by the app at the point-of-sale terminal and then confirm by hitting a button on the handset's screen.

The app also makes cards redundant at ATMs by generating codes that that are keyed in to the machine with a similar system for online shopping, eliminating the need to enter payment card data at e-commerce sites.

Meanwhile, money can be transferred to recipients simply by entering their phone number. Customers can also check balances and transaction history, and locate the nearest ATMs and vendors accepting mobile phone enabled payments.

Security is provided by an app PIN code that users set at activation, alongside customer-initiated transaction value and frequency limits.

PKO says that the new app is just the beginning and that the project's long term objective is to develop a new local payments standard based on the IKO brand, opening the service up to non-account holders.

Wojciech Bolanowski, director, electronic banking division, PKO, says: "As new technical solutions and new customers needs appear, we will create and add new functions to the app, including such payments as: parking tickets; city transport fares; shopping coupons; loyalty programmes, or even securities brokerage and investment services."