Vodafone has partnered with German-based payment service provider Wirecard AG to introduce a mobile payment service.
According to Wirecard, the partnership will be "based on the creation, implementation and operation of all technical mobile payment processes as well as issuing virtual and physical co-branded Visa cards."
Christian Wirtz, Vodafone group director, mCommerce, said: "Wirecard is a highly competent technology partner to implement our mobile payment service."
He added: "We want to use our mobile wallet to offer customers contactless payments using their smartphones.
"We also attach great value to innovation for both our mobile offering and also for additional value-added services."
Markus Braun, Wirecard AG’s chief executive, said: "Telecommunications providers will become part of the payment process with mobile wallets. They will thus become key drivers in a paradigm shift through to a cash-free society."
Wirecard said in a statement that the Vodafone payment service will be rolled out internationally from this year.