Mobile network O2 has teamed up with retailers in Dublin’s docklands to trial a discount programme that uses customers’ smartphones.

The scheme offers consumers the chance to redeem discounts and promotional offers with 50 retailers in the area through the O2 Docklands Deals phone application.

Available for iPhone and Android smartphones, the app turns the phone into a digital wallet, allowing users to store discount coupons and offers ready to use in-store. Participating stores have a specially installed pod, provided by 2ergo,where customers can tap their phones to redeem the offer using a wifi connection. The app uses location service to find offers nearby, and deals are also promoted through Twitter on the DocklandsDeals account.

Retailers can create new promotions quickly and measure the success of campaigns more accurately using the new system.

Telefonia Ireland marketing and innovation director Eugene Mitchell said other new services would follow.

O2 recently announced a partnership with toll payments firm Easytrip for motorists using the M50 toll bridge .