MasterCard Introduces MasterPass, Forges Deal With VeriFone

Published in CSP Daily News

"Every device is becoming a shopping device"

BARCELONA, Spain -- MasterCard has introduced MasterPass digital payments service that allows consumers to use any payment card or enabled device to discover "enhanced shopping experiences that are as simple as a click, tap or touch--online, in-store or anywhere." The company announced MasterPass at the Mobile World Congress in Barcelona, Spain.

VeriFone Systems Inc. and MasterCard have announced an agreement that enables consumers and merchants to use the MasterPass service at the point of sale--both at the register and in the aisle.

"Every device is becoming a shopping device," said Ed McLaughlin, chief emerging payments officer, MasterCard. "MasterPass brings together all of the ways we pay for things, from traditional plastic cards to digital wallets, and gives consumers the ability to make a payment from wherever they are and with one simple experience."

MasterPass is the evolution of PayPass Wallet Services, which the company announced in spring 2012 and has been in production trial with select merchants and issuers. Consumers around the world will now be able to sign up for the service through financial institutions in Australia and Canada by the end of March, and in the United States and the United Kingdom later in the spring and summer, respectively.

MasterPass availability in 2013 will expand to other markets worldwide, including Belgium, Brazil, China, France, Italy, Netherlands, Singapore, Spain and Sweden.

The MasterPass suite of services includes:

  • MasterPass checkout services to provide merchants a consistent way to accept electronic payments regardless of where the consumer may be. For in-store scenarios either at the register or in the aisle, MasterPass will support the use of NFC, QR codes, tags and mobile devices used at points of sale. For online purchases, MasterPass provides shoppers a simple checkout process by eliminating the need to enter detailed shipping and card information with every purchase.
  • MasterPass-connected wallets to enable banks, merchants and partners to offer their own wallets. Consumers can securely store card information, address books and more in a secure cloud, hosted by an entity they trust. The wallet is open, which means that in addition to MasterCard cards, consumers can use other branded credit, debit and prepaid cards.
  • MasterPass value-added services to enrich the shopping experience before, during and after checkout. These will include more information such as account balances and real-time alerts, loyalty programs, as well as offers and experiences.

"The most successful next generation payment product will be considerate of a wider range of stakeholders in its design and allow them to impact the user experience according to their business need and still-evolving industry dynamics. MasterPass reflects this modern sensibility of agnostic-based design," said Patricia Hewitt, director of debit advisory service for Mercator Advisory Group.

San Jose, Calif.-based VeriFone and Purchase, N.Y.-based MasterCard plan to integrate MasterPass as a cloud-based payment option within VeriFone's GlobalBay Mobile Point of Sale (mPOS) and GlobalBay Clienteling applications. This will allow shoppers to access their MasterPass wallet accounts to pay from anywhere in the store on mobile devices--such as smart phones and tablets--using the GlobalBay software. Additionally, VeriFone will continue to support contactless acceptance of the MasterPass wallet.

VeriFone's GlobalBay mPOS application helps retailers improve the overall customer experience by enabling them to arm associates with mobile devices to scan items, apply coupons and discounts and complete transactions from any location in the store. The GlobalBay Clienteling application helps build more personal and profitable customer relationships by enabling associates to record consumer preferences and buying habits, and leverage customer data for promotions and cross-selling. The MasterPass integration will take the commerce experience further, combining retailer data with actual purchase data for more targeted customer offers.

"VeriFone is continuing to improve the consumer shopping experience and drive omni-channel adoption by helping retailers adopt the new wallet and alternative payment innovations their customers are demanding," said Jennifer Miles, executive vice president of North America for VeriFone. "VeriFone's experience and assets enable us to manage the complexity of integrating these new technologies into the existing retail infrastructure, whether the format is NFC, QR code or the cloud."