Everything Everywhere, the parent company of UK operators Orange and T-Mobile, has partnered with MasterCard to develop mobile payment solutions for Everything Everywhere subscribers.

To kick off, the two companies will launch a co-branded NFC solution for pre-paid mobile payments, which will enable customers to make contactless payments with their handset at any retail location with a contactless POS payment system – currently standing at a number of over 100,000.

Over the course of the five-year partnership, MasterCard and Everything Everywhere say they intend to branch out, into areas including P2P money transfers, loyalty rewards and a digital wallet combining in-store, online and mobile payments. The companies will also work together on services to enable small businesses to accept mobile payments.

“MasterCard’s vision is of a world beyond cash, where consumers and small businesses alike can benefit from simple payments using smart technology,” says Marion King, President of MasterCard UK & Ireland. “This partnership builds on our strong heritage in the mobile payments space and ensures that MasterCard remains the partner of choice for leading businesses in the UK.”

Its unclear where this apparently exclusive partnership leaves the proposed mobile wallet joint venture between Everything Everywhere, Vodafone and O2. Announced last year and intended to be rolled out in time for the Olympics, the venture has undergone a number of delays courtesy of the European Commission, which is concerned about its effects on competition in the space.