Russian communications group MTS (News - Alert) has chosen On Track Innovations’ (OTI) COPNI mobile payment solution for its near field communication (NFC) projects.

OTI, a global specialist in contactless smart card solutions, is working with SITRONICS (News - Alert) Smart Technology as its technological partner in Russia.

According to a release, MTS will launch its first retail application of NFC program later in October 2011. The company will launch mobile payment and loyalty program at LUKOIL gas stations allowing retail customers to use their mobile phone to pay for fuel transactions at the dispenser.

The payment process will be completed through a COPNI-enabled cell phone, says OTI.

The company’s COPNI was chosen after rigorous testing by MTS and this selection represents the first commercial NFC project in Russia based on SIM-cards with SWP/HCI-protocol and Host Controller Interface.

Elaborating further on COPNI, OTI says that a COPNI-enabled mobile phone is a platform that enables mobile network operators (MNOs) to provide an after-market solution to existing subscribers.

Customers can simply tap the COPNI-enabled mobile phone near a contactless reader, for a variety of payment transactions including prepaid, credit and debit, as well as loyalty programs and other NFC related applications.

“COPNI is the ultimate solution for operators, providing them maximum flexibility,” said Oded Bashan, chairman and CEO of OTI. “It is cost-effective and it allows the MNO to provide solutions to a large existing customer base regardless of the handset type and model, bringing contactless payments and NFC into real life program quickly.”

Read a related article at TMCnet “Universal Secure Registry Provides Mobile Payment Security to Third Parties.”