MasterCard Worldwide and Spanish telecommunication company Telefonica SA are starting a joint venture to develop mobile payments services in 12 Latin American countries, the companies announced Jan. 25.
The venture, which is to be managed independently and equally owned by the partners, is to build on both companies’ banking relationships to develop “mobile wallet” services for funds transfers, bill payment, retail purchases and other services, the companies said. The venture will 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 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 microbusinesses such as taxis and street vendors.
“By offering mobile financial [services], 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, Telefonica global head of financial services. “This joint venture places Telefonica in a solid position to lead the development of mobile financial solutions in Latin America.”
