T-Mobile has confirmed that it is the partner referred to as the reason that the Simpay mobile payment scheme is on hold.

"At the moment we have no plans to implement the system; this is generally seen as the reason for the halt on Simpay development," said a T-Mobile spokesman.

"The mobile industry is changing dramatically. Things which made sense two years ago don't make sense now."

He explained that the mobile company is shifting to focus on open payment systems handled over the internet rather than relying on a phone-based system using Wap.

The spokesman also stressed that, although the planned pan-European system will not be rolling out, T-Mobile is still part of the Simpay consortium and the system may be adopted in local markets.

"It makes it difficult for the group if one member isn't there," said a Vodafone spokesman. "But there is still valuable intellectual property out there that can be used nationally."

Simpay was due to be launched this summer and would have allowed people to use their phone to make online and offline purchases.