Telefónica and MasterCard have unveiled MFS, a JV which will develop mobile payment solutions in Brazil.

The first product, set to launch in April 2013, will be a pre-paid account accessed via mobile phones alongside a MasterCard card, which will let consumers transfer cash to other people, make in-store purchases, top-up airtime and carry out other financial transactions. It will primarily focus on the payment requirements of Telefónica Vivo customers who do not have bank accounts. However, users who already have current accounts can also sign up for the service. Cash can be transferred onto pre-paid accounts at mobile phone refill stations, supermarkets and newspaper stands. The product uses USSD (Unstructured Supplementary Service Data) technology and is compatible with all GSM devices, allowing real-time interaction with users.

"The new product will provide ease of use, inclusion, control and security for millions of Brazilians, backed up by the reputation and financial strength of two major companies, MasterCard and Telefónica," says Etchegoyen, CEO atFS Serviços de Meios de Pagamento. "The pre-paid cell phone account opens doors for millions of Brazilians who own mobile phones but have never benefitted from electronic payments or current accounts."

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