Shell has unveiled two major initiatives at its annual dealer conference.

The oil company announced that it was partnering with PayPal to become the first fuels retailer in the UK to offer payment via smartphones nationwide.

Mobile payment via apps on smartphones is scheduled to be available later this year and will enable customers to pay for their fuel at the pump.

Consumers will be able to use the service through either the Shell Motorist App or the PayPal App. After driving into the forecourt the customer simply selects the pump on the app. The app then authenticates the transaction and the customer can fill up and go.

When refuelling is complete a receipt is automatically sent through to the phone, letting the consumer drive away, safe in the knowledge the transaction was a success.

Following a successful trial in 2013, Shell will be piloting the service for invited Shell Drivers’ Club customers in April, with plans to roll it out nationwide later in 2015.

Michael Hominick, retail marketing manager retail at Shell UK, said: “We’re committed to providing a fast, safe and secure service. We’ve listened to our customers and know they will benefit from this innovation. They will now have the flexibility and convenience of paying without having to leave their car. Those who want to go in store and pay or purchase other items will still be able to, with the benefit of reduced queues.

“This is an exciting development for Shell. We believe that by working with a trusted brand like PayPal this new service will positively impact our service stations by delivering the security, choice and convenience UK motorists are after.”

Rob Harper, director, mobile commerce at PayPal UK, said: “We’re offering drivers a faster way to fill up their car and pay, and get back on the road. Consumers can use their mobile to pay at over 8,000 UK shops and restaurants. Our partnership with Shell takes us further down the road to the day you can leave your wallet at home and pay with your phone.”

In addition Shell introduced a new four-tiered offer for dealers to sell deli2go hot and cold food and drinks. Shell said Deli2go was growing, and in order to make it easier for dealers to benefit from this, it was introducing different tiers to match dealers’ convenience retail requirements.

The tiers vary from: a chilled deli2go range to fit with existing chillers; a deli2go ‘clip in’ with a hot food counter and cold food; and a shop refit to have the full deli2go offer.

Hominick said: “This is part of Shell’s significant investment in our convenience retail business. We want to bring the benefits of our deli2go range to dealers and will work with them to offer them a format that suits them along with helping plan shop layout to allow for sufficient queuing space, impulse purchase opportunities, optimal gondola placement for clear visibility to the till and key categories including coffee, sandwiches, food on the go and news.”