July 02, 2012

MasterCard announced it is partnering with Deutsche Telekom to enable European consumers to use their mobile phones to make payments.

The initial roll-out will take place in Poland later this year, said MasterCard. Also this year, German consumers will be introduced to mobile payments, initially in a trial with mobile phone tags and cards, continuing into the first half of next year with a mobile wallet service which will also be open to other issuing banks and partners. Deutsche Telekom will issue the MasterCard products via its subsidiary company ClickandBuy, the owner of an e-money license. Products will also be launched in other European markets. The partnership aims to make mobile payments a reality for Deutsche Telekom’s 93 million mobile customers across Europe, according to the companies.

“The payment space continues to be ripe for innovation, particularly at a time when we’re seeing an accelerating movement away from cash – driven by technology," said Ann Cairns, president of international Markets for MasterCard Worldwide. "MasterCard’s heritage is rooted in the creation of open technology, designed for everyone wanting to benefit from a more convenient and secure shopping experience. The mobile wallet service is open to other issuing banks and partners, helping support our customers in adapting to new consumer behaviors and changing market dynamics. Through today’s announcement we are showcasing a real meeting of the minds and that’s where true partnerships come from.”

[Related: Interest Rising in Mobile Payments]

ABOUT THE AUTHOR
Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as ...