Lloyds has signed a partnership deal with Monitise which will see the bank launch its own mPOS system along with a range of other mobile payment services this Autumn. 

 Monitise white-labels its fintech solutions for use by its clients, already in use by O2, RBS and the Co-op in the UK. It also serves a third of US banks. Lloyds has not revealed pricing for the chip & PIN device or the cost of transactions, which will only be on offer to its banking customers.

Speaking at the launch event, Richard Johnson, strategy director at Monitise, said that banks had been under threat from start-ups like Square and are now fighting back. “mPOS is just a catalyst around which loads of other services will be provided. But there isn’t going to be a sliver bullet for all this.”

Monitise acquired its mPOS capabilities with the buyout of eMerit in the final quarter of last year. Tim Corke, in charge of mPOS at Monitise and former eMerit chief exec, confirmed that contactless mPOS solutions are “in the pipeline. The next generation of devices is about extending the range of payment methods,” he said