Published on the 30/04/2014 | Written by Newsdesk
While Visa has publicly admitted it is considering changes to its current model for digital wallets, MasterCard is getting closer to its dream of a virtually invisible payments process online and in-store…
MasterCard this week announced the immediate availability in New Zealand of MasterPass, its globally unique digital platform that gives shoppers a click-and-go checkout for online purchases.
The digital wallet securely stores MasterCard and other branded credit, debit and prepaid card information, address books and more on its secure platform so users do not need to enter detailed card and shipping information for online purchases. The MasterPass digital wallets will be available through New Zealand banks “because customers trust their bank” and the data is stored either on MasterCard’s PCI compliant platform or by the bank.
Matthew Barr, MasterCard’s head of market development and innovation Australasia said the launch of the digital wallet brings MasterCard one step closer to its goal of providing a click-and-go online shopping experience and a tap-and-go in-store experience, using NFC-enabled payment cards integrated with the same digital wallet. The wallet-based experience is optimised for the smartphone to help enable easy plastic-based transactions on mobile, he said.
Peter Chisnall, MasterCard New Zealand country manager said the MasterPass solution is a “crucial step in the evolution from plastic cards to digital wallets”.
“MasterPass is about providing consumers and businesses with convenience, accessibility and security. With MasterPass, consumers can safely do their grocery shopping on the bus on the way home from work, or make a last minute gift purchase during their lunch break, without the need to re-enter card and shipping details.”
He said New Zealand consumers are financially and technologically savvy, and he sees a real appetite in the market for a safe and efficient way to make digital payments.
Barr said that MasterCard is taking a multi-pronged strategy to take the MasterPass digital payment platform to market in New Zealand, approaching major merchants, payment gateways and shopping carts. The digital wallet is based on open architecture and is free, with the only costs being for integration, which can be achieved within a few days. While MasterPass was launched in Australia, Canada, the UK and the US in April last year as a technology proof of point with limited partners, MasterCard’s intention is that new markets, such as New Zealand, have a full ecosystem available from day one.
Westpac New Zealand will be the first bank to issue wallets in New Zealand and ANZ, BNZ, and Kiwibank are also currently working with MasterCard. Payment technology providers Fontis, Flo2Cash, IP Payments,Payment Express, Paystation and Solutionists will also be offering the wallet and there are 100 local merchants already accepting MasterPass including Webjet, BuyInvite, DC Shoes, Jeanswest, LivingSocial, NZSALE, Quiksilver and Roxy. Book My Show, Briscoes, Event Cinemas, Fishpond, Live Nation, Living & Giving, Rebel Sport and Ticketmaster are also considering the solution.
When asked about its competition at Visa, Barr said its V.me solution is quite different and the relationship between the consumer and the wallet is with Visa not the bank. It is also a payment gateway where MasterPass is not. He said Visa had made some very different decisions adding that Visa’s CEO had recently said the company is reviewing its digital wallet strategy.
Barr also said he does not see Amazon’s one-click solution as a threat to MasterPass, despite the fact that it has been opened up to other merchants. He said it is a “big ask” by Amazon to get other merchants using the technology when they perceive the e-commerce giant as their major competition.
MasterCard hopes digital wallets will become a standard feature of the e-commerce landscape within the next three to five years, although Barr admits this is an optimistic goal.
