Mastercard rolls out in-app payment service

MasterCard has launched an in-app payment system that allows secure purchases within a mobile app.

 

Dubbed MasterPass, the service does away with the need to store payment card credentials in mobile apps, MasterCard said.

 

"Consumers are shopping and paying in whatever way best fits their needs and lifestyles – and from every device they have. They are looking for digital ‘shortcuts’ that provide speed, convenience and a great experience. With MasterPass, this can be a simple tap, click or touch at checkout, at home, on the go, and now, directly within an app," MasterCard said.

 

Among the first app providers to use the service are Forbes Digital Commerce, Fat Zebra, NoQ, Starbucks Australia and Shaw Theatres Singapore.

 

“We’re creating great experiences for consumers across all channels and all devices, and enabling merchants to reach new consumers in ways not possible in the pre-digital world ... We’re also developing a framework to make all payments using MasterPass as or more secure than anything we can do on cards today, ensuring that consumers can benefit from the highest possible levels of security,” added Ed McLaughlin, Chief Emerging Payments Officer at MasterCard.

 

MasterCard cited figures from ABI Research showing overall revenues from mobile applications, including in-app purchases, will reach $46 billion by 2016, more than five times greater than the $8.5 billion in 2011.

 

It also noted users of smart devices are likely to have downloaded 26 apps, and are storing payment card and other sensitive information with several app providers.

 

"Apps with MasterPass embedded in them enable consumers to complete a purchase with as few as one click or touch on their favorite connected device without leaving the app environment. The optimized checkout process creates a seamless shopping experience, supported by the highest levels of security and cryptology," MasterCard said.

 

“We’re excited to begin offering MasterPass to our customers as an innovative digital payment solution. This fully aligns with our philosophy to make in-app commerce as easy and efficient as possible,” said Robert Tibbs, Chairman & CEO of, Forbes Digital Commerce. 

 

Developers, merchants

 

MasterCard said MasterPass in-app payments will be made available to developers and merchants beginning in the second quarter of 2014. — TJD, GMA News