Telefónica O2 begins mobile payments rollout in Germany with mPass contactless stickers

The telecoms giant is adding MasterCard PayPass stickers to the mPass service it operates with Vodafone and Deutsche Telekom, allowing users of the mcommerce and ecommerce payments service to also use it to make purchases in stores.

Telefonica's Michiel van Eldik
VAN ELDIK: “Our ecosystem around finance products is virtually complete”

Telefónica O2 Germany has begun the move to extend the mPass mcommerce and ecommerce payments service into the retail payments market.

mPass uses SMS notifications to allow customers to make online purchases with their mobile phone, without sharing their bank or card details with the merchant. Telefónica, with fellow German carriers Vodafone and Deutsche Telekom, first announced plans to extend their mPass service to stickers and NFC phones in August 2011.

Now, Telefónica has announced plans to issue customers with MasterCard branded payments stickers, allowing mPass to be used in retail stores for the first time. Customers will then be able to make purchases of up to €25 (US$32), without entering a PIN, at any merchant equipped to handle MasterCard PayPass contactless payments. Higher value transactions can also be performed, with the added security of a PIN being required.

Customers have two options for settling up the purchases they make. They can use their mPass account as a stored value card and top it up with funds from their bank account as required, or they can choose to have each payment debited directly from their bank account on an individual basis.

“Our ecosystem around finance products is virtually complete,” says Michiel van Eldik, Telefónica Germany’s managing director of wholesale and partner management. “The use of MasterCard PayPass and the collaboration with Wirecard represent an important step in this regard. In short, our mPass customers benefit when out shopping from an extensive network of points at which this type of contactless payment is accepted — both in Germany and worldwide.”