Australian Westpac Bank has announced a new pilot Android mobile contactless payment application in partnership with MasterCard. The pilot will use handsets with the Android mobile OS and fully-equipped with a secure element embedded in a SIM card. Using a virtual debit MasterCard on the phone, participants in the pilot will be able to tap their phones on contactless NFC terminals to pay.

Axel Boye-Moller, Westpac's head of mortgages, cards and merchants, said the bank is committed to embedding mobile payments into all aspects of its core business and providing a product offering that redefines the customer experience.

"Online and mobile are the cornerstone of Westpac's business. Currently 3.4 million Westpac customers are digital customers, 43 percent of whom use their mobile phone to process payments online," Moller said. "The pilot enables simple mobile payments for purchases and reflects our approach towards progressive payment solutions for our customers."

According to Gizmodo, the pilot will be limited to 100 internal Westpac employees and external vendors kitted out with a Samsung Galaxy SIII phone. Feedback from the pilot parictipants will then be used to help Westpac design its eventual mobile payment product.

"Mobile banking represents a significant change in the way customers and banks do business, and Westpac customers will be instrumental in helping design the final application," Moller said.

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