Czech Republic bank Komercni banka is joining with wireless carrier Telefónica, Visa Europe and handset-maker Samsung to offer a new pilot mobile payment program. The FI will offer 2,000 owners of Samsung's Galaxy SIII the ability to trade in their current SIM cards for a special payment SIM card offered by KB. With the KB payment SIM card, users can simply tap their phone at contactless terminals to pay for goods.

"Komercni banka has been continuously supporting innovations in payment methods," said Petr Polák, payment manager for KB. "In co-operation with our partners, we are excited to be the first bank in the Czech Republic to offer our clients this revolutionary way of payment."

Kozler said the mobile payment pilot represents the way people will pay in the future and that Visa Europe expects half of all transactions to be done via mobile devices by 2020.

The payment SIM cards are free at 19 of its O2-branded stores across the Czech Republic and even come pre-loaded with a credit of CZK250 ($13) from Komercni banka. The cards can be linked to an existing KB bank account or customers can set up a new account. Visa Europe is providing the mobile payment technology for the pilot.

"Together with our partners, it is our goal to introduce the technology of mobile contactless payments as an alternative to cash payments," said Miloslav Kozler, Visa Europe regional manager for contactless and mobile projects in the Czech Republic and Slovakia. "The mobile payments offer a high level of convenience, speed and security. For merchants, they bring the new system of client service."

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