Ukash, a London-based firm that sells prepaid cash vouchers, has signed a deal with Transact Network Ltd. to issue a “virtual” prepaid MasterCard for Ukash customers in two countries, PaymentsSource has learned.

Transact Network, a principal MasterCard Worldwide member based in Gibraltar, will convert Ukash customers’ 19-digit voucher codes into MasterCard card numbers with a card verification code in Germany and the United Kingdom, says Paul Coxhill, Ukash marketing director. Ukash is scheduled to announce the Transact Network agreement next month in London at Internet World 2010, a digital marketing and online business conference.

The agreement with Transact Network will enable German and UK Ukash customers to log in to a Ukash Web site that still is under construction. Consumers would use the site to type in their Ukash voucher 19-digit code and fill out an application. The site redeems the cash voucher and e-mails the customer a MasterCard number to use when making purchases online. Transact Network will charge Ukash customers an undisclosed conversion fee.

Ukash this week also announced an agreement with QIWI, a Moscow-based electronics payments company. The deal enables consumers to purchase Ukash vouchers at 100,000 locations throughout Russia (see story).

In Russia, Ukash sends text messages with the voucher-purchase amount to customers’ mobile phones. The company also sends a 19-digit voucher code. Voucher holders use the code numbers to pay when shopping online at participating Web sites.

In other countries, however, customers receive a printed receipt with the Ukash voucher code and the voucher’s value. Ukash vouchers are available at 420,000 physical locations in 30 countries.

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