Digital security provider Gemalto will supply prepaid EMV payment cards to Mobile Financial Services, the new joint venture formed by Telefónica and MasterCard Worldwide. The news comes as a part of the launch a new payment service called Zuum offered by Telefónica's Vivo brand in Brazil.

Zuum is an effort by Vivo to reach Brazil's high percentage of unbanked consumers. Nearly 40 percent of Brazilians lack access to basic financial services.

Through Zuum, customers of Vivo can set up a pre-paid MasterCard account and manage it through their cellphones. They will also be able to make peer-to-peer money transfers, merchant purchases, ATM cash withdrawal and pay bills.

"We relied on Gemalto to help us quickly launch the first of several innovative solutions that will allow mobile subscribers with or without bank accounts to make secure payment and money transfers conveniently with pre-paid m-payment services," said Marcos Etchegoyen, president of MFS. "Our goal is to promote financial inclusion for unbanked Brazilians and to extend secure payments via mobile devices to all consumers who seek alternative payment services with the lowest possible cost."

Read more about money transfer/P2P services.