Telefonica and MasterCard create JV to offer mobile banking in Brazil

MasterCard and Telefonica have entered into
a 50:50 joint venture to offer mobile financial solutions for 65 million Vivo
consumers in Brazil.

The initiative will create a mobile wallet
allowing consumers to make payments via their mobile phones as well as transfer
funds, pay bills and make online purchases.

The new company will operate independently
with each shareholder holding 50 percent of the equity.

“Underscoring MasterCard’s commitment
to financial inclusion, the joint venture represents an excellent opportunity
to offer affordable and efficient financial solutions to millions of consumers
who have mobile phones but have never had access to the benefits of electronic
payments,” said Richard Hartzell, president of MasterCard for Latin America and the Caribbean.

The service promotes financial inclusion
for Brazilian consumers allowing operations between banked and unbanked
consumers and fostering the acceptance of mobile payments in locations that
traditionally have only accepted cash transactions, such as taxis and delivery
services as well as direct sales such as door-to-door transactions.

“This partnership positions Telefonica
as a leading developer of mobile financial solutions in Brazil,” said
Joaquin Mata, Global Head of Financial Services at Telefonica Digital.

By Team
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