Telefonica and Mastercard Offer Mobile Payments

The companies formed a joint venture in order to provide financial solutions through mobile phones in Latin America.

Wednesday, January 26, 2011

Movistar mobile customers in Latin America may use the mobile phone to transfer money to other people, pay bills, purchase airtime and make purchases in shops and stores, among other services.

This is the first time that two leading companies in the payment industry and telecommunications sector have joined forces to create a new company focused on integrating the advantages of accessibility of mobile phones used as a tool for financial solutions associated with payment systems.

The new company, a 50/50 owned by both companies, leverages relationships with banks of both companies in the Region, with Telefónica´s telecommunications assets and the expertise of MasterCard in payments. The Joint Venture will have an open model for ensuring interoperability with banks and without banks, creating a bridge between the worlds of telecommunications and the financial sector. In this sense, it will seek to provide current (more than 87 million) and potential mobile users in Latin America payment services through mobile technology or an electronic wallet or prepaid account, including remittances, airtime, bill payments (electricity, water, etc ...) and purchases in stores and shops. Equally, those who are customers of Movistar and those who are not - this is a total of 200 million mobile phone users in the twelve regional countries covered by the agreement - will benefit from some of these solutions, such as remittances.

More on this topic

El Salvador to Regulate Mobile Financial Services

October 2013

A bill is to be submitted to Congress which intends to regulate banking transactions via phones.

The initiative will be presented in the next few days by the Central Reserve Bank (BCR) and the Superintendency of the Financial System (SSF), said the president of the BCR, Martha Evelyn de Rivera.

Sending Remittances By Mobile Phone

August 2012

From the month of September recipients of remittances in Guatemala, Honduras and El Salvador will be able to receive them on their mobile phones.

By using a its cellular network platform, the Guatemalan company Tigo Money, a subsidiary of Tigo, will offer international services for money receipts.

Tigo Money Agencies Multiply

June 2012

Tigo announced yesterday that it will increase the number of Tigo Money agencies in Guatemala from 1400 to 2000, in order to reach populations without banking facilities in rural areas.

Tigo Money started as a remittance service that allows cost-effective money transfers to Tigo users in Guatemala, and it is now making preparations so that these agencies, which are installed in convenience stores, drugstores and gas stations in local communities, can also to pay microcredit.

Guatemala: Payments Using Cell Phones and Cards

April 2012

Visa Payments and Transfers is a system that allows transferring funds or making payments from cell phones using debit or credit cards.

Visa Inc. has developed a technology for making payments and debit card and credit transactions from phones that will be used in Guatemala for the first time in Latin America.