A method for forming a panoramic image using a camera. The method comprises taking a first photograph using the camera. On a display of the camera a blending area is formed. The blending area includes a part of a first image of the first photograph displayed on the display. The camera is moved before being prepared to take a second photograph. In the blending area only, a pixel matching process is performed for determining an alignment of the portion of the first image in the blending area and part of a second image of the second photograph in the blending area. A camera is also disclosed.