Mobile operator Telefónica and MasterCard have partnered on a prepaid mobile phone service in Brazil. Launching in April 2013, the prepaid scheme is the first product from the company’s joint venture MFS and will target the countries unbanked.
Customers use their mobile phone to top up a prepaid account which links to a MasterCard card. This can be used to transfer cash to other individuals, make in store purchases, refill a mobile phone and carry out other financial transactions. Although it is aimed predominantly at the unbanked demographic, Brazilians with current accounts will not be excluded from the service.
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The product will use Unstructured Supplementary Service Data (USSD) technology to facilitate mobile to card transfers. USSD is compatible with all GSM devices and provides real-time interaction for users.
Marcos Etchegoyen, CEO of MFS serviços de meios de pagamento, said: “The prepaid cell phone account opens doors for millions of Brazilians who own mobile phones but have never benefitted from electronic payments or current accounts”
Similar services are already provided by the mobile operator and the card issuer in Argentina and Peru. The two companies hope that Telefónica’s coverage of 3,700 Brazillian cities will encourage take up of the service in the regions largest economy.
In September, Telefónica revealed that Latin American represented 49% of all consolidated revenues, exceeding those from European operations for the first time.
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