MasterCard Worldwide has entered a strategic collaboration with UAE-based telecom operator Etisalat and with Research in Motion to launch NFC-powered m-payments in the United Arab Emirates. Network International and Oberthur Technologies have supported the development of this service.

Under the deal, consumers holding an enabled smartphone available in the UAE need to tap their smartphone at any MasterCard PayPass-enabled reader to pay for their purchases. Currently there are 341,000 MasterCard PayPass-enabled merchant locations globally.

Transforming smartphones into virtual payment cards, the mobile payments application leverages the MasterCard PayPass platform, which uses NFC technology, to allow the enabled smartphone to securely transmit and receive information wirelessly.

The enhanced smartphones, which will be available in the local market from Etisalat, will give consumers the ability to use their phone as a mobile wallet and link their PayPass-enabled credit, debit or prepaid MasterCard card accounts to their mobile phone to fund mobile-initiated payments. Consumers will be prompted to enter a PIN on their mobile phone before completing a transaction.