Terms weren't disclosed.
Mastercard will combine its own network with Verizon's 5G connectivity to drive solutions for the global-payments and commerce ecosystem.
The two companies plan to innovate in in contactless shopping and autonomous checkout technology.
They also plan to work on internet-of-things sensor connectivity to help power fintech, payments and banking.
At last check Mastercard shares were 2.3% higher at $384.13 while Verizon ticked up 0.1% to $56.22.
In late April, Mastercard reported first-quarter earnings that topped analysts estimates.
Mastercard reported net income of $1.8 billion, or $1.83 a share, up from $1.7 billion, or $1.68 a share, a year earlier. The latest adjusted earnings came to $1.74 a share, surpassing the FactSet analyst consensus of $1.58 a share.
Net revenue totaled $4.2 billion, up from $4 billion. Analysts had forecast $4 billion in revenue.
Mastercard said during a conference call that it planned to invest more in data and cybersecurity products and increase spending on advertising and marketing, according to Bloomberg.