Subway has teamed up with mobile phone network 02, so that consumers can automatically receive scannable vouchers through their mobile phones when they are near the sandwich retailer’s stores, which can immediately be redeemed in-store.

The innovative new scheme uses O2 Media’s location-based texting service, called ‘You Are Here’, which is part of an add-on service providing exclusive offers and information to smart phone and tablet users.

Members are alerted to the latest offers from Subway via text message when they approach a local store. The technology works using ‘geo-fences’, which are set up around the stores, so that when a customer enters the target area, they automatically receive an MMS. The voucher can then be scanned in-store with the same device that is used to scan Subway loyalty cards.

“We are delighted to be the first retailer to offer consumers the bar-code recognition mechanic combined with a location-based texting service,” said a Subway spokesperson. “In conjunction with Subway’s commitment to contactless payment, this advance demonstrates our dedication to providing an innovative consumer experience. This is the next step in the mobile evolution of Subway.”