Last week City A.M. revealed Visa will roll out a network of payment points where users can use their mobile phone to pay in stores.
Now Monetise has said it will partner DeviceFidelity to provide software to process the payments, with the London-based firm taking a small percentage of each transaction.
Analysts at Evolution Securities project medium-term revenue estimates of £15m from the deal.
DeviceFidelity will produce a special microSD chip that will slot into most smartphones and Monetise will produce the software to communicate with the contact points. Monetise has long-standing partnerships with both DeviceFidelity and Visa.
Visa is coming to the end of a trial based in Sitges in Spain before launching a partial UK roll out in time for the 2012 Olympics.
The firm believes the technology has the potential to provide a lucrative new revenue stream. Visa has 1.7bn users worldwide but this is dwarfed by the 4.7bn people who use mobile phones.