Envirofone.com has already paid out £1 million to consumers for items, but the organisation still estimates that fewer than four million of the 18 million upgraded each year are being recycled.
The issue is particularly pertinent at this time of year with millions of people thought to have received new models for Christmas.
Fears have risen that old phones may end up in drawers or even landfill sites when they could be used to benefit the owner financially, with UK mobile trading website Envirofone.com also making a small donation from the transaction to charity.
Envirofone.com chief executive Pete Petrondas said: A mobile phone is generally replaced every 12 months which means high e-waste. Fewer than four million are recycled each year in the UK which is less than a quarter of the total number of phones upgraded.
The average household has two or more unused mobiles lying around with Christmas time giving and traditional new year sales shopping automatically meaning a hike in upgrading handsets at this time.
He added that recycling old mobiles is one new years resolution that is easy to keep, with the Cheshire-based company aiming to greatly increase collections during 2007.