German bank Dortmunder Volksbank has announced the release of a new mobile virtual credit card based on MasterCard contactless PayPass technology, using the Giesecke & Devrient trusted service manager solution, and with the cooperation of systems integrator DG Verlag.

DG Verlag will personalize the ClassicCard Mobile credit card on customers' smartphones where credentials will be stored in the secure element on the device's SIM card. The mobile payment product will use the O2Wallet, the digital wallet from wireless carrier O2, and will only be available to O2 subscribers carrying NFC-enabled phones such as the Samsung Galaxy S3.

The credit card will actually be issued by WGZ Bank.

The new mobile payment product is the evolution of a previous effort that employed NFC-enabled stickers attached to users' handsets.

"The MasterCard PayPass dual-interface credit card was developed as the first contactless credit card. The paySticker, a small contactless credit card that can be affixed to a handset, is a stepping stone on the road toward mobile payment with cellphone," said Franz Köllner, executive board member at DG Verglag. "Now, we have taken the next innovative step and are providing a virtual credit card integrated in the smartphone."

Read more about mobile/digital wallets.