Telecommunication services provider Telefonica O2 Germany has teamed up with German provider of electronic payment and risk management services Wirecard.

In recent news, Telefonica O2 Germany has announced the roll out of mobile person-to-person (P2P) payments as well as an NFC-based mobile wallet service in mid-February 2013. Under the agreement, Wirecard is set to manage the payment processing and the provisioning of the virtual “O2 Wallet mpass Card” to NFC-enabled SIM cards.

Customers are set to be able to carry out mobile-to-mobile money transfers using the ‘mpass Geld senden’ service which will enable users to transfer funds from one mpass account to another in real time.

Additionally, Telefonica is also set to pilot an NFC-based mobile wallet service dubbed the O2 wallet which allows customers to make contactless payments in stores accepting MasterCard PayPass.

Wirecard is an international provider of electronic payment and risk management services. Worldwide, the Wirecard Group supports over 12,000 companies from various industry segments in their efforts to automate their payment processes and minimize cases of default.