Australian lender Commonwealth Bank has partnered with MasterCard to use its MasterPass technology and launch a new online payment service for mobile phones.

The new service will allow the bank’s customers, who shop online with CommBank Checkout, to make purchases at over 200 MasterPass-enabled retailers including Event Cinemas, The Iconic, Ozsale, and Booktopia through tablet, mobile device or desktop.

Commonwealth Bank cards, payments, analytics and retail strategy executive general manager Angus Sullivan said the bank’s focus is to offer their customers the latest technology and innovations that simplify payments regardless of the channel they are transacting in.

"CommBank Checkout is a convenient and secure way for customers to complete their online purchases in Australia and worldwide which will be particularly handy with Christmas fast approaching," Sullivan added.

"This is of course all underpinned by our 100% money back guarantee for any fraudulent transactions."

MasterCard market development and innovation head Matt Barr said they know consumers prefer the comfort and convenience that dealing direct with their own bank gives them.

"Studies show the connection to your own financial provider is particularly important when it comes to embracing digital payments," Barr added.