Currently available to iPhone and Android users, the new Coles Mobile Wallet app and Coles Pay Tag also links up your Flybuys loyalty card program.
The new mobile wallet is only available to Coles MasterCard customers, who can request an NFC-enabled Pay Tag to attach to the back of their smartphone that can be used in Coles and any other terminal where MasterCard's PayPass functionality is supported.
The Coles Mobile Wallet is free and can be used to access and manage your account, view Flybuys points and offers, and to turn the Coles Pay Tag on or off.
Coles began trialing the technology last year, which found that 77% of the participants found the Pay Tag more convenient than the traditional credit card.
"We understand that Coles customers are doing even more from their mobile devices... With this in mind, it is exciting to launch the Coles Mobile Wallet, which puts customers in control of their spending and introduces Australians to an entirely new way to pay," said Richard Wormald, Cole's General Manager of Finance Services.
In terms of security, Coles says that its Pay Tags and Mobile Wallet are covered by MasterCard's Zero Liability and have Falcon fraud technology.