New technology that enables people to use their mobile phone like a debit or credit card has been approved by the government.
Several phone companies and banks are trialling the new technology, which allows customers to buy things by swiping their phone over a sensor in a similar way to Oyster cards.
The government had insisted on tough security measures to ensure the system is not an easy target for phone thieves or cloners before giving the go ahead.
These measures include the requirement that bank details, phones and SIMs are disabled as soon as possible once phones are reported lost or stolen, and that any transactions above £10 will require PIN verification.
Home Office minister Alan Campbell said: "These guidelines are an important step forward in protecting the public from criminals and I am pleased that the mobile and banking industries have worked with us to ensure that the public are protected at the earliest opportunity.
"This technology is an exciting new development but we must continue to work together to reduce any new opportunities for criminals to profit from mobile theft. As new technologies like this develop we aim to consider where safeguards can be incorporated at the drawing board stage."
Those signing up for the contactless payment phone will also be encouraged to add their details to a National Mobile Phone Register, making it easier for stolen phones to be identified and recovered.
