Telefonica and MasterCard have joined forces to provide customers in Brazil with mobile payments, transfers, purchases and other financial transactions.

The joint venture, called MFS, will first launch a pre-paid account for Vivo customers that can be accessed by mobile phones in conjunction with a MasterCard card, in April 2013.

The account will let users transfer cash to other people, make in-store purchase, top up their phone credit along with other financial transactions. Cash can be transferred onto prepaid accounts at mobile phone refill stations at locations such as supermarkets and newspaper stands.

The product is aimed at meeting the needs of customers without bank accounts and will use USSD technology, which is compatible with all GSM networks and is widely used in Africa and the Philippines. Transactions are secure as no data is stored on the device.

“The new product will provide ease of use, inclusion, control and security for millions of Brazilians, backed up by the reputation and financial strength of two major companies, MasterCard and Telefônica,” said MFS CEO Marcos Etchegoyen.

Similar services are provided by Telefonica and MasterCard in Argentina and Peru.