The European Commission has given proposals by CaixaBank, Santander and Telefonica to set up a joint venture to offer digital financial services the green light.
After looking into the concerns over competitiveness the Commission stated there are already several providers of similar services in Spain, with more still to emerge, therefore the trio may join up to devise their own.
Included in the services is a mobile wallet to allow enterprises and consumers the ability to pay using a handheld device.
Users will need to connect through a mobile or other internet connection in order to access their wallet and the Commission concluded Telefonica would not have the ability to block the access of other providers on its networks, therefore no competition laws are in danger of being broken.
Officials also assessed the impact of the transaction arising from the relationship between the market for providing digital wallet services, including peer-to-peer payment functionality, and the market for issuing payment card services, where Caixa Bank and Santander are active.
By Claire Archer