Electronic payment provider Euronet Worldwide Inc. announced it has entered into a commercial processing relationship with start-up Wipit to help it launch its "wipit" mobile payment service.

Wipit's mobile payment service is aimed at the cash-preferred market giving them access to a prefunded account that can be used for in-app purchases and eventually mobile payments. (Wipit was featured on Mobile Payments Today back in April.) The service is accessed via an application available for both iOS and Android smartphones.

"Prepaid gift cards and credit cards do not address all the needs of the smart phone application user," said Euronet Worldwide President Kevin Caponecchi in the announcement. "Cash-preferred consumers need more flexibility and convenience in their mobile payment options, and wipit addresses those needs."

The wipit product also gives developers a way to integrate a smartphone-optimized, single-click payment system into their Android or iOS mobile applications, Euronet said.

The cash-preferred and unbanked market are an important market for digital content like gaming and social media where younger consumers may not have access to bank accounts or credit cards.

"The adoption rate of smart phones in the prepaid mobile market is significant and will continue to expand in the future. Unfortunately, without a cash payment option, the underbanked or cash-preferred consumer doesn't have access to many features traditionally available only through payment via a credit card," said Richard Kang, CEO of Wipit, Inc.

As a part of the announcement, Euronet Worldwide said it has also made a strategic investment in Wipit. The amount of the investment was not disclosed.

"Euronet provides us with payment expertise, prepaid back office processing capabilities, and a ubiquitous nationwide load network," Kang said.

Based in Leawood, Kansas, Euronet Worldwide offers payment and transaction processing solutions to financial institutions, retailers, service providers and individual consumers. The company's global payment network includes 12,058 ATMs and approximately 53,000 POS terminals in 33 countries.

Wipit is headquartered in Southern California.