MasterCard, Smart unit in joint venture for mobile payment solutions

MANILA, Philippines - MasterCard Worldwide and Smart Hub Inc., a subsidiary of leading wireless services provider Smart Communications, have formed a joint venture to roll out mobile payment solutions for consumers in emerging markets around the world.

The deal will accelerate the delivery of mobile payment solutions and enable financial institutions and cellular phone networks in various countries to provide end-to-end mobile payment services through the MasterCard Worldwide network.

This comes on the heels of the successful introduction of the Mobile Payments Gateway (MPG) in 2009 in Brazil with Itaú Unibanco, Redecard and mobile network operator, Vivo, in which Smart, through Smart Hub, was tapped by MasterCard Worldwide to provide the mobile financial services platform to support the new MasterCard MPG.

The partnership brings together Smart Hub’s tested mobile payments platform and telecom experience and MasterCard’s global brand, resilient network and electronic payments legacy in order to establish an optimal mobile payments infrastructure for developing economies.

The joint venture between MasterCard and Smart Hub will leverage the intersection of mobile telecommunications and electronic payments to meet the needs of the expanding mobile payments market place and grow their businesses. It will build upon their introduction of the MasterCard MPG an open mobile payment processing platform designed to facilitate MasterCard mobile payment solutions in developing markets, with the first launch scheduled in Brazil with Itaú Unibanco and Redecard, along with mobile network operator Vivo in Brazil.

“Our longstanding commitment to facilitating the development of the global mobile payments market place makes the joint venture with Smart Hub Inc. an exciting opportunity for MasterCard to speed up the execution of our mobile payments strategy in developing economies,” MasterCard Worldwide innovative platforms head Joshua Peirez said.

He pointed out that by deepening their relationship, they will empower the one billion mobile phone users without bank accounts around the world by providing a link to the MasterCard Worldwide Network-the global electronic infrastructure facilitating global commerce.

Meanwhile, Smart Hub president Mojico emphasized they are banking on MasterCard to leverage on Smart’s proven mobile payment technology and experience in delivering mobile financial services to un-banked consumers in emerging markets.

“By combining our assets with MasterCard’s powerful network and brand, we will add strategic value to the mobile payments value chain and help catalyze growth around the world,” he explained.

Officials noted that by bolstering the framework for mobile payments in developing economies, MasterCard and Smart Hub are meeting a societal need in transforming financial services for billions of consumers who have long been excluded from the traditional financial system.

They added that with mobile payments, both banked and unbanked mobile consumers will gain access to a wide range of MasterCard mobile payments solutions that provide greater payment convenience and security over cash-using their mobile phone to make purchases, send and receive money between family and friends, transfer funds between accounts, pay bills, deposit funds such as payroll or social benefits, top up mobile airtime, load value to prepaid accounts, get cash from ATMs, and keep track of their balances and activities with mobile alerts.