After running mobile payments pilot projects near Milan, Telecom Italia and Visa Europe have announced they will expand the program across Italy. Consumers using selected NFC-enabled smartphones will receive a TIM-branded Visa card and be able to make contactless payments at enabled point-of-sale terminals across Europe, the companies said.

The telco will install contactless terminals in its stores across Italy, and the partners will also launch services to support person-to-person payments via smartphone and e-commerce payments that allow customers to shop online with mobile phones.

The Visa contactless payments service will be the core of the TIM-branded mobile wallet, an open digital wallet created by TIM to host and support services from a wide range of partners including financial institutions, retailers, transport and public utility companies, the partners said.

Contactless payments allow consumers to make payments under 25 Euros by tapping their smartphone on a dedicated contactless POS terminal; purchases over that amount require a passcode.

Telecom Italia CEO Marco Patuano said more than 14 million NFC-enabled smartphones are expected to be used in Italy by next year. "Italia has developed a specific technologic platform to ensure the security of mobile payment services that banks will enable to cardholders," he said in a news release. "The partnership with Visa allows us to accelerate the deployment of payment services allowed through mobile phones, a step that will change people's habits and will make everyday life easier for our customers."

Davide Steffanini, general manager at Visa Europe, Italy, said Italy is ready for an expansion of mobile payments services. "[Italy] is the leading market for prepaid products in Europe, and Italians have always been quick to adopt the latest trends in mobile technology," he said. "We see this collaboration as a true catalyst to drive forward Visa's vision for the future of payments in the market."

Learn more about contactless/NFC.