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(Pocket-lint) - EE today announced Cash on Tap, a mobile payments service in collaboration with MasterCard. The new service will enable mobile payments of amounts up to £20 from a compatible EE handsets.

EE says the handset has to have been bought through EE retail channels and at launch includes the Samsung Galaxy S4, Samsung Galaxy S3 LTE and Sony Xperia SP, with further device support to be added in the next few months.

You'll be able to pay at more than 230,000 outlets in the UK, with locations like McDonald's, Boots and Greggs accepting Cash on Tap. That means you'll be able to pay for your Fajita Chicken Lattice with your phone.

EE's Cash on Tap system is SIM-based, meaning you'll be able to use the service whether your phone is on or off. The EE Tap Wallet app will be a free download from Google Play and be used to manage your account, although you'll also be able access your account online.

As an incentive to get you started, EE is offering £10 of free credit to customers using the service. You'll get the first £5 when you activate Cash on Tap and an additional £5 when you top-up cash to the service from a UK credit or debit card.

The service should operate exactly as current touch payment services do, like those offered with a Barclays debit card. In this instance, however, the service is managed through EE and will need you to pay into, rather than drawing straight from your bank account.

EE says that Cash on Tap is the first of a number of mobile payment offerings that will be coming, with tickets and loyalty cards being mentioned at the launch of the service today.

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Writing by Chris Hall. Originally published on 3 July 2013.