UK mobile phone operation O2 has announced the launch of a location-based marketing scheme, called Priority Moments, which will provide customers with discounts with nearby retailers.

Available for Android and iPhone, Priority Moments makes use of GPS technology to track customers and offer them vouchers, discounts and other deals. Offers are delivered on the screens of customers' handsets to allow them to redeem available deals.

The new £6million campaign will cover as many as 30 big-name chains, including WH Smith, Little Chef, JJB Sports, Halfords and Pizza Hut.

O2 said that the scheme would provide a boost to loyalty by offering customers with the best deals to allow them to save money.

Announcing the new feature, O2 Marketing & Consumer Director Sally Cowdry said, "You will consistently find offers and experiences from O2 and these companies over a long period of time."

Priority Moments scheme s an extension of O2's Priority initiative that allowed people to obtain 600,000 concert tickets even before they went on general sale.