MasterCard and ING partner to deliver multi-device payment trial across mobile and online
MasterCard and ING Group are to conduct a joint trial in the Netherlands that is demonstrating a new way to pay online using mobile phones.
The solution being tested in the trial supports two scenarios: first, shopping and paying on a phone where the consumer is able to select merchandise they want to purchase, select their payment method, provide their shipping information and enter their PIN to authenticate the transaction. An EMV-compliant cryptogram is supplied by the phone directly to the merchant's payment gateway for processing.
In the second scenario, the consumer is able to start their shopping on a PC or tablet, and then complete the payment step on their phone using a secure QR code that connects the Mobile PayPass application in the user's phone securely to the merchant's online shopping cart.
In both cases, coupons and vouchers can be applied in real-time as the consumer shops, and e-receipts presented upon successful payment. The trial promises to deliver a similar user experience in both the physical and digital world and a comparable level of security to a regular EMV transaction.
The trial extends the functionality of the Mobile MasterCard PayPass application, already used to support contactless payments at point of sale, to deliver a highly secure and easy to use payment experience at internet merchants.
By using the Secure Element in the mobile device, a comparable level of security can be achieved whether a purchase is being made in-store or online.
"This innovative mobile payment product enables ING to offer our customers a one-click-buy experience,” says said Mark Buitenhek, Global Head of Payments & Cash Management at ING Group. “The trial allows us to explore which new type of mobile payments products and technologies will meet our client' needs. Working with MasterCard on this trial is in line with our international payments strategy to introduce standardized and internationally accepted payment products that offer a high level of security and convenience."
The payments industry has begun to see a substantial shift in online shopping from traditional PCs to smartphones and tablets. According to market-research firm Gartner Inc., in the mobile space alone, payment transactions are expected to surge to an estimated $600 billion world-wide by 2016, up from $172 billion this year. Consumers will continue to shop and pay in whatever way best fits their needs and lifestyles - with a simple tap, click or touch - in-store, online or on a mobile device. At the same time, merchants want to focus on providing the best consumer experience possible - regardless of where, or how, a consumer decides to engage them.
"As a company leading the global transformation of digital payment technology, we continue to work with innovative partners like ING to develop and test solutions that address and enhance the ways consumers can pay for goods and services - both today and tomorrow," says Jorn Lambert, Group Head, Emerging Payments, Europe, MasterCard Worldwide. "This trial builds on our recently announced PayPass Wallet Services and our vision of delivering to consumers and merchants a secure, converged payments experience in-store, online or on a mobile device."
The trial, which began in mid-October, will run through the first quarter of 2013.