MasterCard launches MasterPass: Will this digital wallet fly?

MasterCard launches MasterPass: Will this digital wallet fly?

Summary: MasterCard revamped its PayPass digital wallet with MasterPass. It's unclear whether consumers will adopt this digital wallet.

SHARE:
TOPICS: E-Commerce, Mobility, MWC
12

MasterCard on Monday launched MasterPass, the next generation of its PayPass e-commerce wallet.

masterpass

The announcement, made at the Mobile World Congress powwow in Barcelona, comes as MasterCard's PayPass had only 13 percent awareness among U.S. consumers, according to comScore. PayPal had the most awareness followed by Google Wallet.

MasterPass will launch at the end of March in Australia and Canada followed by the U.S. and U.K. MasterCard also said that MasterPass will roll out in Belgium, Brazil, China, France, Italy, Netherlands, Singapore, Spain and Sweden in 2013.

The digital wallet service consists of the following:

  • Checkout services to accept electronic payments from multiple locations. MasterPass will support NFC, QR codes, tags and mobile devices at the point of sale.
  • Connected wallets so banks, merchants and partners can offer their own branded wallets. These wallets will include cards other than MasterCard.
  • "Value added services" to provide information during shopping.

Needless, to say MasterCard has a full roster of merchants and financial institutions supporting MasterPass.

The big question remains whether MasterPass will manage to gain traction among shoppers, who know of digital wallets but aren't exactly clamoring for them.

digitalwallet020413

 

More;

Topics: E-Commerce, Mobility, MWC

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

12 comments
Log in or register to join the discussion
  • Yeah, well, good luck with this -

    I've had some difficulty getting partner companies to even accept 'virtual' loyalty cards and sales bar scans via such apps as PassBook and CardStar.

    The likelihood of accepting virtual credit cards? Priceless.
    MleB
  • Chuckle ..... As a digital wallet user

    Limiting to a single type is ludicrous.
    ...... besides, I don't even have a Mastercard.
    Amex, Visa yes.
    rhonin
    • Rhonin

      Read above. It accepts types other than MasterCard. You will be able to store your Visa in the wallet and use it just as you can with Google Wallet.
      wwjayvee
  • Not acceptable!

    I keep my cards in a metal wallet. I only want merchants accepting them if they or the credit card company are responsible for identity theft. Security is far more important than convenience.
    shanedr
  • MasterCard has to impove security

    Until MasterCard improves their security, I won't be using any of their new 'products'...I get a new MasterCard about every 3-4 months because my account was 'compromised'...I checked with my local bank and they said it wasn't them, it was MC that was re-issuing the card regularly (unless the'yre passing the buck)...real pain in the ars when I have to go in and change the account number on my auto-pay bills every 3-4 months...especially if I miss one and they don't get their payment...come on MC IT...time to 'do the tighten-up'...
    Cubbie
    • MC has nothing to do with that

      MasterCard has nothing to do with your account being compromised. Your bank assigns that number. MasterCard only assigns a range to the bank. MasterCard is a processor and does help with fraud detection, but their system is very secure. However your account could be compromised in a variety of ways such as a waiter/waitress at a restaurant, an online purchase experience with a vendor who is not honest or does not have good security (which this new wallet will help with), or anyone who handles the card.
      wwjayvee
      • addition

        For disclosure, I am a MasterCard employee. This is my opinion and doesn’t necessarily represent the views of MasterCard.
        wwjayvee
  • How about real security changes first...

    We need to get identity theft under control (for all credit cards), for example we need to require pins for ALL credit card transactions.
    cmwade1977
  • Not likely to use

    Too insecure for me. I don't use Paypal either. I saw a news story from a Memphis? Tennessee TV station where they went to a mall with a scanner and got people's card numbers without the person being aware, to show what can happen with the right equipment, the peole's information was destroyed and the people were made aware, of course, but if some unscrupulous person was doing it you would be compromised. Someone got ahold of our Discover card number and charged some items, we haven't figured out where they could have gotten it. We will be getting a new card number. We have a MC as well, but haven't had a new number there for a couple of years.
    dhays
    • Nonsense

      That was a beat up about NFC; probably financed by eBay's John "Not For Commerce" Donahoe ...

      You will be using NFC or "Chip & PIN" eventually whether you like it or not because it will actually reduce fraud ...
      Philip Cohen
  • PreyPal, be gone!

    Whether it is MasterCard's or Visa's version of the new digital wallets, this will be even more secure than the existing card systems as the merchant will never get the card number; but more importantly it means … goodbye clunky PreyPal—it has not been nice knowing you ... http://bit.ly/UVXx53
    Philip Cohen
  • Upsides to a smartphone wallet

    One benefit to smartphone wallets is that you'll realize much sooner when your phone is lost. And how many times have disgruntled merchants and restaurant employees stolen credit card numbers from their patrons? There's no handing off w/ a smartphone payment app. So now you have security concerns. Harlan Hutson developed TraitWareID, a mobile authentication app that links the identity of users with certain personality traits of their devices, like their music and photos, then ties the device and user with an Identity Binding Token. The IBT can act as a virtual token, or proxy for the authenticated end user in any transaction. Pretty cool stuff.
    vcruz911