Mastercard Inc (NYSE:MA) and Visa Inc (NYSE:V) introduced their latest next-generation mobile payment initiatives at the Mobile World Congress few days back. Foraying into the innovative digital payment services space, MasterCard introduced MasterPass, which will facilitate customers a quicker, secured and relaxed mode of payments for their purchases. Card giant Visa also inked a deal with global electronic device maker Samsung. The parties will jointly steadfast mobile payments by functioning on near field communication (NFC) technology.
These are pathbreaking deals that are expected to revolutionize the rules of mCommerce in the coming months and years. And these deals are significant from investors’ point of view as well, because such game-changing mobile technologies like NFC would result in immense revenue gain for the card companies.
MasterCard teaming up with VeriFone Systems
Mastercard Inc (NYSE:MA) is teaming with VeriFone Systems Inc (NYSE:PAY) to integrate its MasterPass digital payments platform as a cloud-based payment option with VeriFone’s GlobalBay mobile point-of-sale and clienteling applications.
MasterPass will now allow smart and simple checkout services by using NFC to scan bar codes and pay through mobile devices, thereby making point of sale transactions much more easy and secure. MasterPass also offers other value-added services like account balance information, alerts on discount offers and loyalty programs.
MasterPass will simplify payments through any debit, credit or prepaid card or any device like smartphone, computer, laptop or tablet. VeriFone Systems Inc (NYSE:PAY) said its customer base includes 75% of the top 200 largest retailers in the U.S. The GlobalBay mobile POS application allows retail associates to use mobile devices to scan items, apply coupons and discounts, and complete transactions for shoppers from any location in a store.
The GlobalBay clienteling app enables associates to record consumer preferences and buying habits, and leverage customer data for promotions and cross-selling. The MasterPass integration will combine retailer data with purchase data for more targeted customer offers.
Samsung smartphones to sport Visa payWave app
Samsung and Visa Inc (NYSE:V) announced that Visa’s NFC-enabled mobile payment system will be built into future Samsung smartphones. Samsung has also agreed to load the Visa payWave app, which enables consumers to make contactless payments, onto its mobile devices featuring NFC technology.
Samsung’s NFC-enabled mobile devices will now have a chip carrying the customer’s bank account information. This information will be accessed through Visa Mobile Provisioning Service. The collaboration will result in enhanced security and faster checkout, with the convenience of a simple wave of the mobile device in front of a payment terminal.