There are many fronts in the war for consumers’ digital wallets and while in-store/NFC offerings soak up the spotlight, the battle to control ecommerce payment transactions may utlimately be more important (or at least more winnable for traditional players). Following similar announcements from American Express and others, MasterCard has announced a partnership to exapnd their MasterPass digital Wallet to more ecommerce merchants:
“MasterCard and PAY.ON have joined forces to enhance the MasterPass digital wallet solution by making MasterPass immediately available to more than 110 payment service providers (PSPs) via PAY.ON’s white label global payment gateway. This advanced digital payment technology is available to more than 56,000 web shops worldwide that route payments through PAY.ON’s partners.”
The focus is on simplifying the online checkout process and reducing abandonment:
“When shoppers have to repeatedly enter account details and address information, it leads to higher rates of shopping cart abandonment. The continuing trend toward shopping on mobile devices therefore requires innovative, customer and merchant-friendly payment solutions…MasterPass combines several technologies for the first time, creating a digital wallet that stores payment and shipping information in a highly secure data center at the issuing bank, and then automatically transmits cardholder information to the merchant during the payment process. Payment is therefore reduced to a few clicks, and due to the connection with the bank’s internal systems, is quicker, easier to use, and more secure.”
Overview by Alex Johnson, Sr. Analyst, Credit Advisory Service at Mercator Advisory Group
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