MasterCard Debuts Network for Digital Wallet

The credit card processing firm will rollout PayPass services in the third quarter.

May 10, 2012

NEW ORLEANS - MasterCard has finally revealed its new digital wallet program called PayPass, the Financial Times reports. The unified network will make it faster for banks, merchants and partners to process purchases in stores or online by allowing customers to securely pay with a simple click of the mouse, touch of the tablet screen or tap of the smartphone.

PayPass Wallet Services delivers three distinct components €" PayPass Acceptance Network, PayPass Wallet and PayPass API. These services enable a consistent shopping experience no matter where and how consumers shop, as well as a suite of digital wallet services, and developer tools to make it easier to connect other wallets into the PayPass Online acceptance network.

American Airlines and Barnes & Noble will be among the first merchant partners to incorporate the PayPass Online checkout button on their websites, and American will integrate PayPass Wallet into its mobile application.

"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 for MasterCard, in a press release. "We realize 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."

Nationwide, mobile payments are forecast to grow as shoppers are using devices with near-field communications to purchase products and services. A recent report predicts that more Americans will use mobile phones to pay in the next eight years.

"Mobile payments is a very promising area for us," said Ralph de la Vega, chief executive of AT&T€™s mobile unit in the Financial Times. "I don€™t think it will be long before electronic wallets replace physical wallets."