ANZ has launched Mobile Pay, a mobile payments app that allows customers the ability to tap and pay for purchases, and to make withdrawals at contactless-enabled ANZ ATMs.

ANZ said Mobile Pay is available for download to customers with Android smartphones with a near-field communication (NFC) reader and running KitKat 4.4 or above.

According to the bank, ANZ Mobile Pay gives customers at checkout three payment options: Wake to Pay only requires customers to power their phone and tap it on the terminal; Launch to Pay requires customers to unlock their phone and launch ANZ Mobile Pay before tapping on the terminal; and Passcode to Pay requires customers to unlock their phone, launch ANZ Mobile Pay, and enter their passcode.

The bank added that those who choose Passcode to Pay and spend over AU$100 will be required to enter their four-digit PIN that is linked with their card, as well as their passcode.

Meanwhile, customers that choose to make contactless withdrawals using Mobile Pay will also still be required to enter their PIN.

In addition, Mobile Pay has been designed to support ANZ Visa and American Express credit cards, as well as ANZ Visa Debit cards.

ANZ managing director of products and marketing Matt Boss said given that Android is a major player in the local smartphone market and Australians are prolific users of contactless payments, ANZ Mobile Pay will be a popular addition for many of its customers.

"ANZ Mobile Pay delivers a payments solution for our customers to help them take full advantage of the rapidly changing digital environment we live in, including the ability to withdraw cash from contactless-enabled ANZ ATMs with a tap of their phone," he said.

"Customers using ANZ Mobile Pay will be able to add their existing credit or debit card, and then simply tap their mobile phone for purchases at contactless retail locations anywhere in the world with the security we provide for all online and digital transactions."

The announcement comes as Australia's major banks continue to sideline Apple Pay, with American Express being the only credit card that currently supports the platform in the country.

Last month, the National Australia Bank (NAB) updated its mobile banking app with the release of NAB Pay to enable Visa Debit account holders to make tap and go payments on their Android NFC-enabled smartphone.

The Commonwealth Bank of Australia implemented its own tap and go payments system on NFC-enabled Android devices in October 2013. At the time, the only compatible devices that customers could use were the Samsung Galaxy S4 and S5, as they were the only smartphones on the market that supported NFC technology.

Those with another device were required to purchase an NFC-enabled sticker from the bank to attach to their phone before using the technology.

Since March last year, Android-owning CBA customers could use the tap and go functionality on any locally purchased NFC-enabled phones running KitKat 4.4 and above.

Westpac customers have also been able to utilise their phone's inbuilt NFC to tap and pay from their compatible Android devices since April last year.