Sybase 365, a subsidiary of mobile messaging and mobile commerce services company Sybase, has entered a partnership with UK-based Telefonica Digital, a business division of mobile services provider Telefonica, to provide mobile wallet services in Europe and Latin America.

Under the agreement, Sybase 365 is set to develop Telefonica's mWallet, a virtual wallet which is set to provide mobile payment services including stored value accounts and peer-to-peer transfers. The mWallet can store prepaid, debit, credit and loyalty cards and is set to allow users to make payments via compatible handsets and point of sale terminals.

Telefonica is set to launch the mWallet in Latin America and in Europe during the first half of 2012.

Telefonica Digital provides digital services including cloud computing, mobile advertising, M2M and eHealth to Telefonica's customers worldwide.