Merchants in the UK, Germany, Bulgaria and Romania are to participate in the pilot of a new mobile POS (mPOS) service that enables contactless payments to be accepted on Android mobile devices “without the need for any additional hardware”.

Mastercard has partnered with software-only mPOS startup Phos and Paynetics, an e-money institution with an EU-wide licence which will act as the acquiring bank for the pilot.

The 200 merchants taking part will be able to download the Phos app from the Google Play store and have their identity verified “in a fully digital due-diligence process which follows both anti money laundering as well as other locally applicable regulations”.

The goal is to allow “further refining of this innovative point of sale solution based on actual market conditions,” Mastercard says.

“Simple and effective, the solution will enable millions of micro, small and medium-sized enterprises (MSMEs) to accept cashless payments and grow their businesses.”

“Micro, small and medium-sized merchants are the backbone of the European economy,” the payments network adds.

“These small businesses traditionally accept cash only, a disadvantageous and insecure type of payment due to hidden costs and security issues.

“Together, Phos and Mastercard now provide an alternative solution for MSMEs enabling them to accept digital payments in a simple, effective and secure way.”

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