MasterCard Worldwide recently upped the ante on mobile payment roll out in Asia/Pacific with its launch of one of the world’s largest Near Field Communications (NFC) MasterCard PayPass™ pilots. The pilot was launched in Bengaluru in collaboration with Citibank, Nokia and Vodafone, and has introduced mobile payments to the city’s fast-paced lifestyle. It has also put PayPass, MasterCard’s globally interoperable contactless payment system, at the center of industry trials and commercial deployments.
Consumers participating in the Indian trial will enjoy promotional offers such as discounts at various popular retail establishments, including department stores, food courts at shopping malls and office buildings, restaurants and fast food chains, bookstores and multiplexes. From a business standpoint, the pilot has established a fully secure, scalable and interoperable mobile payments ecosystem and will gather user insight across a wide range of parameters. The pilot is also a means to look at the level of acceptance consumers display towards embracing contactless payments through the mobile phone as well as track consumer response to the next stage of innovation in contactless payments – NFC-enabled interactive posters and mobile coupon redemptions.
“Being at the forefront of innovation, we are happy to bring mobile payments to the people of Bengaluru. Mobile payments offer them the convenience of being able to pay through their every day device, quickly and conveniently – without fumbling for their change or wallets. The project marks an important milestone in helping the industry accelerate towards commercial roll outs and puts Asia in the middle of global MasterCard Mobile developments,” said Jeff Portelli, group executive, Global Products & Solutions, Asia/Pacific, Middle East & Africa, MasterCard Worldwide.
Gross transaction value of mobile payments is expected to reach USD300 billion globally by 2013 , indicating the significant revenue potential the segment represents for banks as well as services providers. In order to spur market growth, MasterCard has been working with the industry to create and endorse infrastructure, cost, and revenue modeling, besides standards. “In the longer term, we see mobile services expanding beyond simple payments and fueling economic connections for consumers in the global marketplace. The mobile phone will become a mainstream channel for delivery of various value added services,” said Portelli.
To accelerate consumer acceptance, there is a need to ensure the security and integrity of mobile phone payments, and MasterCard has been playing a leading role in the area of policies and frameworks to better regulate the industry. Recently, it certified Gemalto, a world leader in digital security, for its Trusted Services Management (TSM) offer. The certification immediately applies to Gemalto’s data center in Taiwan and allows it to support financial institutions in the commercial deployment of Near Field Communications (NFC) services on mobile phones according to MasterCard’s security requirements.
Besides the NFC PayPass trial in India and the certification of Gemalto in Taiwan, MasterCard has also recently rolled out a commercial deployment program in Korea and announced the intention to launch an NFC PayPass pilot in UAE.
In Korea, MasterCard teamed up with LG Telecom, a prominent Korean telecommunications company and Shinhan Card, a leading Korean credit card company. This collaboration extends the availability of MasterCard PayPass functionality on mobile phones to all the telecommunications companies in Korea: KTF, LG Telecom, and SK Telecom. Moreover, under the LG Telecom-Shinhan Card program, there are 36 different mobile phone models compatible with MasterCard PayPass available to LG Telecom customers, giving them a wide range of choice.
In the UAE, MasterCard in collaboration with Dubai First, a Dubai Group company, and du, the UAE’s integrated telecom service provider, announced the intention to launch the first NFC PayPass pilot program in the Middle East and North Africa region. The pilot program, which will run for six months at the The Walk in Jumeirah Beach Residence, will be introduced to around 250 customers selected from Dubai First’s co-branded Platinum MasterCard PayPass Card cardholders. During this time, these selected customers can avail of special offers at retailers and a range of promotions presented on the interactive NFC platform.
Other Mobile PayPass trials conducted by MasterCard in the Asia/Pacific region in the recent past include:
•2008 – NFC-enabled mobile payment trial with PayPass capability launched in conjunction with Philippine mobile operator Smart Communications Inc. as a part of GSMA’s Pay-Buy-Mobile initiative.
•2008 – The largest MasterCard Mobile PayPass trial worldwide at the time was launched in collaboration with Cathay United Bank, Farglory Group, Chunghwa Telecom, Taipei Smart Card Company and BenQ Mobile. Phones equipped with contactless payment capabilities were distributed in Taiwan and participants of the trial could use the phone for MasterCard PayPass payments, as well as a train and bus ticket, a source of transport timetable information, shopping privileges, interactive digital content and an electronic door key.
•2008 – Field trial in collaboration with SoftBank Mobile Corp and Orient Corp. This trial was held in Japan to test PayPass ‘tap-and-go’ mobile contactless payments using NFC enabled mobile phones. The results of the trial will be incorporated into the further development of PayPass-equipped mobile phones and services, aimed at maximizing convenience and security for consumers.