EBay has said that its mobile shopping application would be pre-installed in smartphones sold by Telefonica’s 02 unit in the UK.

In its first pre-install deal the e-Commerce company said an eBay mobile app will come as standard with smartphones provided by the telecommunications company later this year.

EBay said other Telefonica markets across the world will follow suit.

EBay has turned its attention to the mobile phone market and had announced its mobile app to compete with start-ups and credit card companies offering similar services. The app lets users buy and sell goods via their mobile phones.

Through its 02 unit, Telefonica services around 22 million customers in the UK.

Earlier, eBay president and CEO John Donahoe had said the company delivered a strong fourth quarter and a solid year, which is enabling them to re-invest in growth.

"We are driving strong global growth at PayPal and strengthening our core eBay business and are innovating in areas such as mobile, which is helping to position us at the forefront of trends shaping the future of shopping and payments," Donahoe said.