
The service will use Nectar cardholder data to make promotional offers specific to each individual, whilst they are on the premises of a retail partner.
Nectar has 14 partners and 400-plus online retailers.
James Frost, marketing director at Nectar, said that mobile technology presented a "massive opportunity" for Nectar.
He said: "You can imagine walking into Sainsbury’s for your weekly shop and on your iPhone certain offers come up.
"We can really see a way where we can do that in a fashion that is going to deliver value to the shopper, while also delivering value to the retailer as they’ll get more participation offers that could have otherwise been forgotten."
Nectar is understood to be in discussions with its advertising agency G2 UK with regards to using data and technology to drive the service.
The mobile technology will be similar to a service to that offered by Vouchercloud, an app that uploads location-based discounts directly to phones.
The iPhone app which provides users with vouchers and coupons for a number of retailers and outings, has gained more than half a million users since its launch in February.