Telecom Italia will send mobile chip-and-PIN card readers to its small business customers through a partnership with mobile payments provider Payleven.

The Italian mobile network operator is sending the mobile readers to follow the country's mandate that businesses accept debit card payments for any transaction of more than 30 euros ($41 U.S.).

London-based Payleven announced the partnership June 30, the same day the Italian law took effect to crack down on an underground cash economy. The law is mandatory for businesses or individuals annually processing more than 200,000 euros in payments ($273,000 U.S.).

Telecom Italia will distribute the free Payleven card readers to all customers of its monthly one GB data package. Those customers can sign up for the reader online, Payleven states in a June 30 press release.

Payleven's Bluetooth-based reader generally sells for 129 euros.

"We are convinced that our joint solution allows small-business owners to comply with the new regulations in a simple and inexpensive way, as well as giving them the opportunity to boost customer satisfaction," Enrico Trovati, business marketing director for Telecom Italia, says in the release.

The companies are targeting more than 1 million small merchants, Payleven says.

Earlier this year, Payleven developed the chip-and-PIN card reader for merchants to accept Near Field Communication contactless payments through NFC-enabled devices. 

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry