MasterCard (NYSE:MA) and and Deutsche Telekom today announced a European partnership to enable consumers to use their mobile phones as a convenient and secure way to pay.
At a press conference in Berlin today, Deutsche Telekom and MasterCard highlighted the importance of their partnership and the introduction of mobile payments - one of the fastest growing consumer services in the last five years. The partnership aims to make mobile payments a reality for Deutsche Telekom’s 93 million mobile customers across Europe.
Commenting on the partnership, Mr Thomas Kiessling, Chief Product and Innovation Officer for Deutsche Telekom said, "This is a huge step on our way to increase mobile payments. With MasterCard we have a well-known and experienced partner generating growth in this important market segment. We want to build a comprehensive ecosystem around mobile payment, helping Telekom to realize its strategy of being the first choice for customers regarding connected life and work".
The first consumer roll-out will take place in Poland later this year. 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 licence. Products will also be launched in other European markets.
Commenting, Ann Cairns, President, International Markets for MasterCard Worldwide said, "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. 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."
The fact that the mobile wallet will be realized in the environment of the SIM card of the smartphones brings considerable benefits to the consumer: not only is the payment transaction secure, but the consumer has continuous and complete transparency and control because each transaction is confirmed via a text message.
