MasterCard partners with banks in US to scale up digital payments and make in-store payment more convenient

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To scale up mobile payments and compete in transactions market amidst Apple, Google and Samsung; MasterCard has partnered with major US banks that include Bank of America, Citi, Capital One, Fifth Third Bancorp, SunTrust Banks and KeyCorp among others. Through this association, banks will be able to use MasterCard’s digital payment platform to offer mobile payment products. Also, customers will be benefitted as they will be able to pay through their phones with MasterCard's Masterpass service without downloading their bank’s dedicated app.

This will also enable Android users to tap and pay at various NFC enabled merchants. However, iPhone users will not be able to use tap-and –pay solutions offered by banks through MasterCard as Apple phone restricts access to its NFC chip.

The company plans to pilot its in-store mobile payment offering in US initially this month, with gradual rollout across Europe, Africa, and the Middle East.

Furthermore, MasterCard will be adding additional ecommerce option to its in-app payment system.  The newer feature will let retailers and other businesses accept contactless payment from their customers. Merchants such as JetBlue, Saks.com, Lord and Taylor.com, Subway app and The Cheesecake Factory app will be deploying Masterpass in coming months to help customers view, split and pay their check through the phone.

PayNXT360 believes the partnership between banks will help MasterCard gain market share. It will help in growth of mobile payments adoption overall as consumers consider transactions through financial institutions more trustworthy. Also, association with Mastercard will help banks to score on other consumer parameters such as ease of use, acceptance at merchant locations, and value added features for mobile payments.

To know more and gain deeper understanding of mobile payment industry in the US, click here.