Spain based telecom company the Telefónica Group and US based payment processor MasterCard International have formed a company MFS to develop payment technologies between the parties using mobile phone.
The newly floated firm will focus on pre-paid clients, and will deliver payments, fund-transfers, purchases and other transaction services.
MFS is planning to introduce its first product in April next year, which will be a pre-paid account that can be accessed through mobile phones together with a MasterCard card.
The pre-paid cell phone account will be beneficial for Telefônica Vivo clients to transfer cash to other people, carry out in-store purchases, recharge their phones and perform other financial transactions.
Cash can be transferred onto pre-paid accounts at mobile phone refill stations, such as supermarkets and newspaper stands, according to the company.
Developed using the Unstructured Supplementary Service Data (USSD) technology and compatible with all GSM devices, it provides fully secure transaction, as well as real-time interaction with users.
Operating in 25 nations and employing 285,000 professionals, Telefónica served over 313.8 million customers, as of September 2012.
MasterCard, a payments processing network provider connects consumers, financial institutions, merchants, governments and businesses in over 210 nations and territories.