MasterCard launches its digital wallet service

MasterCard has unveiled its digital wallet product for online and in-store shoppers, days after Visa launched its V.me service.

MasterCard says its PayPass Wallet Services will enable retailers around the world to offer next generation digital payments. Partners in the UK will be able to sign up in the third quarter of 2012, along with those in the US, Canada and Australia.

Using PayPass, it says, consumers will enjoy a consistent shopping experience, no matter where or how they shop. PayPass Wallet Services are made up of the PayPass Acceptance Network, where consumers can pay online and using contactless purchasing, the PayPass Wallet, which banks, retailers and their partners can white label as their own wallets, and the PayPass API, which gives developers the tools to connect other wallets into the acceptance network.

Consumers can store their payment and shipping information in the PayPass Wallet, which is open to allow them to store other cards such as American Express and Visa. They can then use those cards to pay where there is a PayPass button, whether that’s in-store using NFC technology or via a computer, tablet or smartphone.

“Consumers are looking to pay for goods when, how and where they choose. Merchants want flexibility to easily accept digital payments so they can convert more browsers to buyers both online and in store,” said Ed McLaughlin, chief emerging payments officer, MasterCard. “We realise that when it comes to payments, no single wallet will rule them all. PayPass Wallet Services simplifies the shopping experience while providing flexibility and choice to merchants, banks and consumers.”

Over time, says MasterCard, consumers will be able to check their account information at a glance before using their card, receive real-time spending controls and alerts, as well as targeted discount offers and enhanced loyalty programmes.

Launch customers include American Airlines and Barnes & Noble. Both will offer the PayPass online checkout button on their website, while American will also integrate PayPass Wallet into its mobile application.

“At American Airlines, we’re passionate about giving our customers more flexibility and functionality on their mobile devices,” said Richard Elieson, managing director, Interactive Marketing at American Airlines. “By integrating PayPass into our mobile app, payment transactions become fast and easy and provide the security you would expect from a brand like MasterCard.”

“Consumers are at a pivotal point now where smartphone adoption has exploded and well over 50 percent of Americans now own one,” said Marc Parrish, vice president of retention and loyalty marketing for Barnes & Noble.com. “The technology that will allow customers to make mobile payments at the point of sale has already begun to make a difference, and Barnes & Noble is proud to be leading retail in this technology shift.”

The news follows hard on the heels of Visa’s launch of its digital wallet, V.me.