The card payments network MasterCard Inc. and the Spanish telecommunications company Telefonica SA said Tuesday that they are starting a joint venture to develop mobile payments services in 12 Latin American countries.
The venture, which is to be managed independently and be owned 50/50 by the partners, is to build on both companies' banking relationships to develop "mobile wallet" services for money transfers, bill payment, retail purchases and other services, they said. It is to serve both banked and unbanked consumers in countries where Telefonica operates its Movistar mobile phone service, according to the telecommunications company.
"This initiative puts us at the forefront of mobile payments in the region and arms us with the right artillery to strengthen our war on cash," Richard Hartzell, MasterCard's president of Latin America and the Caribbean region, said in a press release.
The joint venture will try to expand acceptance of electronic payments to "cash-based merchant locations" and micro-businesses such as taxis and street vendors.
"By offering mobile financial solutions, we are fully responding to the demands of the population in Latin America that trusts in their mobile phone to conduct financial operations," said Joaquin Mata, the global head of financial services at Telefonica.
"This joint venture places Telefonica in a solid position to lead the development of mobile financial solutions in Latin America," Mata said.
