Telef-nica Czech Republic, operating under its 02 brand, will pilot a mobile payment program to allow merchants to accept payments on their smartphones or tablets from consumers using Near Field Communication-enabled stickers or smartphones.

The system will also accept other common mobile payment methods, such as contactless cards, traditional mag-stripe and EMV chip-and-PIN cards.

Called mPOS2, Telef-nica is launching the mobile point-of-sale test with MasterCard Inc. in the Czech Republic this month.

The company plans a full rollout of its payment application and Ingenico’s iSMP mobile pay terminal later this year. Telef-nica also intends to provide the system in other parts of the region, including Slovakia and Germany.

The Czech Republic system will accept both MasterCard PayPass and Visa payWave contactless technology.

Monet, a Czech mobile technology company, developed the mobile POS app for Android, iOS and Windows-based smartphones and tablets used by merchants.

The Ingenico iSMP reader communicates with tablets and smartphones through Bluetooth technology.

When using mPOS2, merchants will enter transaction amounts on their phones or tablets using the Telef-nica POS app. The customer then inserts, swipes or taps a card on the mobile POS terminal. If using EMV, the customer enters a PIN on the PCI-compliant device. For contactless payments, consumers will use contactless cards, NFC stickers or an app on NFC-enabled phones.

Ceskoslovenska Obchodni Banka, a commercial bank serving the Czech Republic, will process payments initiated through mPOS2.

"The Czech market has approximately 320,000 companies, for which this terminal type is appropriate," Josef Puczok, business development manager for NFC and financial services at Telef-nica, told NFC World. "Most of these companies use a service from O2, our traders thus have direct contact with potential buyers of this product."

Earlier this year, Telef-nica Germany introduced a virtual O2 mobile wallet for person-to-person payments, building on its earlier mobile payment systems that incorporate the use of NFC stickers. In May, MasterCard and Telef-nica introduced Zuum mobile payments in Brazil, a program in which Telef-nica’s Vivo prepaid mobile phones would have access to MasterCard prepaid account linked to those points.

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