MasterCard and Telefónica have announced they are forming a joint venture to launch mobile payment solutions in 12 Latin American countries.
The new 50-50 JV will seek to provide some 87 million people with mobile payment services linked to a mobile wallet or prepaid account, including money transfers, mobile airtime reload, bill payment and retail purchases.
According to MasterCard, the joint venture will feature an open model to ensure interoperability among the banked and unbanked segments, enabling predominantly cash-based merchant locations access to electronic mobile payments.
The partners say they are also looking to engage the Latin American population with difficult or no access to traditional banking systems due to low income or remote location.
The system will be available to subscribers of Telefonica’s Movistar network.