Utilising MasterCard's PayPass technology, the system will enable customers to pay for purchases by tapping their mobile phone at specially-equipped terminals.

The price of the purchase will be deducted from a 'mobile account' that customers can top-up with funds.

ING and MasterCard are working with payments technology vendors Collis and LogicaCMG to develop the system. Finnish company Venyon, which operates a service platform for over-the-air NFC payments, is also working on the project along with Taiwan-based NFC outfit Toro.

Commenting on the initiative, Mark Buitenhek, general manager, ING payments retail Europe, says: "Along with a wallet, the mobile phone is the second item consumers always carry with them. Uniting these two increases the level of convenience for our customers."

ING has not disclosed when the system will be available or where it will be tested.

MasterCard and Venyon last week announced a public trial of PayPass technology in association with Nokia and US Bank in the Spokane area of Washington DC.