Barclaycard has launched PayTag, a NFC chip which sticks to the back of mobile handsets. Marketed as a sort of miniature credit card – its a third the size of a normal card, and available at no cost to Barclaycard Visa cardholders – PayTag can be used at contactless terminals to make payments of up to £15, a limit which will rise to £20 in June.

PayTag will be rolled out to a select group of customers over the coming weeks, before the scheme is extended to all Barclaycard customers later in the year.

“We are offering the choice of mobile payments to millions of our customers at no additional cost to them, without the need to upgrade their current handset,” says David Chan, CEO of Barclaycard Consumer Europe. “Barclaycard is developing a wide range of initiatives which will ultimately enable everyone to enjoy the benefits of mobile payments. PayTag is another milestone on our journey to make paying easier, and sits alongside other easy ways to pay with your mobile, such as those we offer in partnership with Orange. ”