MasterCard Brings New Online Payment Methods to Cell Phone Users
MasterCard Brings New Online Payment Methods to Cell Phone Users by UCStrategies Staff
MasterCard is now in the process of experimenting with its PayPass application on cell phones in order to make online transactions more secure. This also involves the use of QR codes to ensure better security for these transactions.
The company is working alongside the Dutch bank ING Group on a trial run based in the Netherlands. The trial tests two different ways of making secure transactions online. Both ways accomplish the same level of security by using the mobile phone with the PayPass application. According to a statement from both companies, this secure element gives the same security level as using a chip-equipped card in any store.
In the first trial group, participants shop via their cell phones and type in a PIN to complete, and thereby authenticate, the transaction. This action is then made secure by connecting an EMV-compliant cryptogram sent from the phone directly to the merchant’s side. When it arrives in their payment gateway then it is ready for processing.
The standard of debit and credit payments, regarding chip card technology, is known as EMV (Europay, MasterCard and Visa).
In the second group, the participant shops by using their tablet or personal computer, but then pays using their cell phone through a secure QR code. This code links the PayPass application to the online shopping cart, making the transaction complete.
In both scenarios, vouchers and coupons can also be applied to the user’s purchase.
Throughout this past year, MasterCard has indeed increased its push for using mobile methods for online payments.
For example, in May they introduced the PayPass Wallet Services. This service allows both merchants and banks to give the option of mobile payments to their customers. Within the Wallet Services is the PayPass wallet and APIs so that their partners can initiate wallets with their own branding and incorporation to the PayPass Acceptance Network.
Additionally, MasterCard is currently working with NTT Docomo. In this project, set to be in operation by next year, they aim to make mobile payments possible for the Japanese operator’s subscribers when they travel overseas.
The trial in the Netherlands is already in progress and will continue into the beginning of 2013. ING reports that 160 participants are involved in this study, using the Samsung Galaxy S III. (RP) Link