Card network Visa is developing mobile payments software for handsets that run on Google's new phone operating system, Android.
The application, available for download on Android powered handsets, will initially be offered to Chase Visa cardholders, with other US issuers set to follow.
Customers will be sent notifications about transactions to their handsets and receive promotional offers from merchants. The service will also use Android's in-built location-based technology to inform customers about nearby retailers where they can redeem the offers and locate ATMs.
Visa says it is working on a payments application that will enable customers to make contactless mobile payments in shops, or while on the go over wireless networks.
Elizabeth Buse, global head, product, Visa, says: "Extending Visa payments and services to the mobile device is a natural extension, and makes the consumer payment experience more convenient, more secure and more rewarding."
Visa is investing heavily in mobile payments and yesterday outlined an initiative to deliver payments applications - including contactless payments, remote payments, money transfer, alerts and notifications - for Nokia's NFC-enabled 6212 Classic handset.
It also set out plans for a mobile money transfer pilot with US Bank that will enable customers to move funds between Visa accounts using their handsets.