Orange and Visa Europe have launched a commercial NFC-based mobile payment service in two French cities ahead of a planned nationwide launch later this year.

The operator said it is the first mobile operator in France to offer mobile contactless payments to its customers.

Orange Cash, which was announced last year, is first available in Caen and Strasbourg ahead of wider deployment.

Subscribers top up a Visa pre-paid virtual card before paying for transactions using their NFC smartphones in locations such as retailers and restaurants.

Orange Cash users have access to exclusive offers from a number of French retailers, located by using a GPS-based feature in the app.

Once the customer has activated the service through the Orange Cash app, the retailers will then share special offers and promotions available at their shops.

To mark the service launch, Orange Cash users who activate their account before 30 June will be credited €10, with an additional €25 credit on making €100 worth of mobile contactless payments.

“The launch of Orange Cash in Caen and Strasbourg  embodies Orange’s ambition to provide our customers with an innovative service that simplifies the daily lives of our customers and provides a new stimulus for local commerce. Orange Cash will be rolled out throughout France in 2014,” said Delphine Ernotte Cunci (pictured), deputy chief executive officer, senior executive vice president, Orange France