Starting this month, Vodafone will rollout across Europe a mobile alternative to the physical loyalty cards used by millions of users in supermarkets, coffee shops and gyms.

The app will enable users of Vodafone’s mobile wallet to load their plastic cards onto their smartphones either by scanning or entering the card details manually.

The new service will be introduced in those markets where the operator’s NFC-based wallet is already present, starting in Germany, Netherlands and Spain.

Other countries are expected to follow later in 2014.

Vodafone is whitelabelling an existing app called Mobile Pocket developed by Austrian firm Bluesource. The app has already been downloaded by more than one million users, said the operator.

It works with Android, iOS, Windows Phone and BlackBerry.

The new loyalty app will sit in Vodafone’s wallet next to its NFC-based SmartPass payments app but does not appear to use NFC technology itself.

According to an entry for the app in the Google Play store, where it scores a 4.2 rating, subscribers have their smartphone screens scanned for loyalty points at the point- of-sale, rather than use a tap-and-pay system.

But some retailers use scanner technology that does not read smartphone displays, in which case the cashier must type in the loyalty card number manually, said the Google Play entry.

Vodafone hopes the app’s practicality will attract users.

Stefano Parisse, group consumer services director of Vodafone, said; “Our customers want to take advantage of as many club, retail and membership offers as possible, but the number of plastic cards often exceed the capacity of their physical wallets”.

To add a new loyalty card, users search on their handset for an existing template. About 1,500 retailers, event organisers and transport companies are already present. If a card is not available then users can create a new template.

And Vodafone hopes companies will want to sign up because they can identify and target repeat customers, said Parisse.

“Participating retailers also benefit since they will be able to send vouchers and special offers directly to the Vodafone mobile wallets of their regular customers,” he said.