Initially, customers will be able to make payments using mobile devices that have NFC functionality, allowing them to make contactless payments at more than 100,000 retailers in the UK.
The two companies stated they would eventually focus on other areas of development including person-to-person money transfers, loyalty rewards schemes and digital payment services allowing consumers to have the same shopping experience for payment in-store, online or using their mobile device.
MasterCard and Everything Everywhere will also develop services that allow SMEs to accept payments using mobile devices, with further details to be announced later this year.
The two firms have an existing relationship, having worked together for Orange's Quick Tap platform, which allowed Barclaycard customers to use NFC technology to make payments.
The news is bound to intensify the ongoing battle for a share of the digiatl wallet market with competing providers holding different views on the technology that best suits consumers in making payments.
It is not yet clear, if or how the news could affect Everything Everywhere's joint venture with Vodafone and O2. The project, dubbed Project Oscar, was set up by the three companies last year but has stalled while the European Commission (EC) carries out an investigation into the tie-up's implications for competition in the market for e-wallets and other services.To view the latest card and payment jobs, go to http:/www.cardandpaymentjobs.com