Corner shops take on supermarket giants with mobile phone loyalty scheme

It will replace coupons, which are seen by many as outdated and inconvenient.

The "Shop Scan Save" system will be run by Pay-Point, the payment company which has terminals in more than 17,500 shops, from corner businesses to Spar and the Co-op.

Customers who sign up will be sent a text message every three to four weeks with about six offers.

There will also be an option to call up for more offers for special occasions, such as a party, a barbecue or Christmas.

Each customer will have a unique barcode ID sent to their mobile phone.

When they are out shopping, they can redeem the special offers simply by presenting their phone. The barcode will be read by the shop till.

Dominic Taylor, chief executive of Paypoint, said: "Coupons never seem to relate to what I want to buy or, if they do, I never remember to take them to the shop.

"But phones are different. Most people take their phone everywhere."

Consumer giants such as Nestle, Unilever and P&G, which own many of the top brands, are understood to have signed up to the scheme.

Around 2,000 small independent stores are closing each year as supermarkets march on.