Thursday, May 30, 2013

Telefónica Announces Digital Wallet Joint Venture with Spanish Banks

Telefónica will form a joint venture company with CaixaBank and Santander to develop new business opportunities based on the latest mobile and communication technologies. The new company will build an online community to ease the connection between merchants and consumers when it comes to offers, discounts and promotions. It also plans to offer a Digital Wallet in which customers can keep all their cards, which will serve as identification in stores and for making purchases within the digital community, as well as being a person-to-person (P2P) mobile payment service for community members.

The companies described their agreement as the first such alliance in Europe between financial institutions and a telecom operator. They believed there is the potential to reach more than 600,000 businesses in Spain.  An international expansion is also part of the plan.

"There is a profound change happening in the way we buy things. Digital technologies are transforming how consumers research products and then identify the best prices, promotions or discounts. This joint venture combines the partners’ technical and financial services expertise to create an ecosystem for the benefit of both retailers and consumers," stated José María Álvarez-Pallete, CEO of Telefónica.