Coles will introduce a new contactless credit card this week, as the supermarket chain continues to compete in the digital wallet space.

The Coles Mastercard Pay Tag,  dubbed the “sticker” credit card, attaches to the back of a mobile phone and allows transactions under $100 to be processed without signing or using a pin number.

The Australian first consumer trial, set to begin this week, will enable a sample group of 5000 customers nationwide to pay with their credit card and earn flybuys points by using the Coles Pay Tag.

The Wesfarmers owned supermarket chain is one of the largest MasterCard PayPass retailers in the world, with contactless payments increasing at Coles by more than 70 per cent in the last year.

Coles finance director, Rob Scott, said, “Our customers are constantly looking for ways to simplify their lives, save time and effectively manage their finances. The new Coles Pay Tag is set to do just that.”

“It does not matter which phone you own, the Coles Pay Tag will make earning flybuys rewards and the PayPass feature of the Coles MasterCard card easier than ever before. We are excited to now offer this new technology to our customers.”

“We believe there is a significant opportunity for Coles to deliver Australian customers further innovation in financial services, as we continue to look for new ways to deliver better value every day.”

The Pay Tag can be used in Coles, Coles Express, and in more than 1.2 million retail locations worldwide that accept MasterCard PayPass.

An app, to work in conjunction with the Coles MasterCard Pay Tag, will be launched early next year for iPhone and Android devices.