As mobile wallets have become increasingly mainstream, they have largely been dominated by technology giants like Google and Apple. Mastercard is looking to broaden that landscape with new tools that allow banks and fintechs to build their own digital wallets directly into their existing apps.
Mastercard’s Wallet Services platform enables companies to develop digital wallets without having to manage integrations or navigate compliance with EMVCo standards on their own.
By allowing banks and fintechs to build wallet functionality into their existing apps, the platform also creates new opportunities to integrate payments with rewards, discounts, loyalty programs, and other services.
Opening the Innovation Floodgates
One of the platform’s most important features is support for both Android and iOS. While Android has long supported various mobile wallet providers, Apple historically maintained a tighter grip over its ecosystem. That changed after Apple began allowing third-party developers access to its near-field communication (NFC) capabilities in certain markets.
Among the most notable developments has been the expansion of tap-to-pay software for merchants. This allows businesses to use a smartphone as a payment terminal, making it easier for small businesses, as well as gig and freelance workers to accept contactless payments using devices they already own.
Apple has also expanded its own capabilities with features such as Tap to Share, positioning the iPhone as an alternative to traditional point-of-sale hardware for many businesses. This model is due for a litmus test as Apple plans to roll it out within its own Apple Stores.
Embedding Everything In-App
While these developments offer clear advantages for merchants and financial institutions, they could also create more personalized experiences for consumers. Mastercard’s wallet platform, for example, could facilitate a broader range of digital wallet experiences and rewards which give users more personalized financial services solutions.
The platform also aligns with consumers’ growing expectation that everyday financial activities—including payments—should be embedded within the apps they already use. Although the digital wallet market is highly competitive, Mastercard’s latest offering gives banks and fintechs another option to deliver integrated payment experiences while bolstering consumer engagement in a fragmented financial services market.
