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MasterCard, Deutsche Telekom to partner on European mobile payment products

Payment giant MasterCard and mobile network operator Deutsche Telekom announced their new European partnership at press conference in Berlin. The two companies will be working together to introduce mobile payment programs in Germany and Poland.

"This is a huge step on our way to increase mobile payments," said Thomas Kiessling, Deutsche Telekom's Chief Product and Innovation Officer. "With MasterCard we have a well-known and experienced partner generating growth in this important market segment."

Kiessling said DT wants to build a comprehensive ecosystem around mobile payments. The carriers currently has more than 93 million subscribers worldwide. 

According to the announcement, the first consumer roll-out will happen later this year in Poland. A trial program using mobile phone tags and cards will start later this year with a mobile wallet service including other issuing banks and partners starting early next year. Other European markets will follow.

Deutsche Telekom's subsidiary ClickandBuy, the owner of the all-important e-money license, will issue the MasterCard products, the companies said.

"The payment space continues to be ripe for innovation, particularly at a time when we’re seeing an accelerating movement away from cash – driven by technology,"said Ann Cairns, President for International Markets at MasterCard Worldwide. "MasterCard’s heritage is rooted in the creation of open technology, designed for everyone wanting to benefit from a more convenient and secure shopping experience.

Cairns said the mobile wallet service is open to other issuing banks and partners, helping support consumers in adapting to new behaviors and changing market dynamics.

For more stories like this, visit the Carriers/Card Schemes research center.