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(Pocket-lint) - Not only will Everything Everywhere be the first network to offer 4G services in the UK, Mastercard has announced that it has become the provider's exclusive partner for the network's contactless payment services. The five-year deal will see the "payment processor" co-develop mobile and digital payment solutions for Everything Everywhere’s 27 million UK customers.

Previously, Everything Everywhere, through the Orange half of its company, has worked with Barclaycard on its Quick Tap NFC initiative, but it will now be Mastercard that will be the payment format of choice, as the two companies will be launching a co-branded pre-pay solution for the contactless technology.

The two companies have worked together before, with an Orange Cash pre-pay card being launched in February 2011, but this will all be new to T-Mobile customers. And they will be exploring other avenues together, including person-to-person money transfers, loyalty rewards and digital payment services - a digital wallet scheme to pay in-store in the same way you might online.

They will also be developing systems to enable small businesses to accept mobile device payments.

"Working with Mastercard is an important step in making mobile contactless payments more widely available for our 27 million customers," said Gerry McQuade, Everything Everywhere's chief marketing officer.

"By moving our existing co-branded card offers on to mobile devices, we are closer to a world where our customers will be able to use their phone to pay for travel to work, pay for small purchases and take advantage of loyalty rewards from their favourite retail outlets."

Writing by Rik Henderson.