MasterCard Pilots Mobile Online Payments
Nov. 8, 2012
MasterCard yesterday launched a pilot in the Netherlands with Dutch financial institution ING Group testing a new online payment method using mobile devices. The solution, based on MasterCard’s contactless PayPass mobile app (but not leveraging NFC), supports two online shopping scenarios that each offer consumers a one-click experience.
On one hand, it enables shopping and paying on a mobile device where, after entering a PIN for authentication, an EMV-compliant cryptogram is supplied by the phone directly to the merchant’s payment gateway for processing. In the other scenario, a consumer begins a transaction on a PC or laptop and, at checkout, completes payment with the device using a secure QR code that connects the Mobile PayPass app in the phone to the shopping cart. Both scenarios leverage the secure element of the phone to support what the companies characterize as a “comparable level of security” to EMV purchases made in the store.
“This innovative mobile payment product enables ING to offer our customers a one-click-buy experience. The trial allows us to explore which new type of mobile payments products and technologies will meet our client’ needs,” said Mark Buitenhek, global head of payments & cash management at ING Group. “Working with MasterCard on this trial is in line with our international payments strategy to introduce standardized and internationally accepted payment products that offer a high level of security and convenience.”
While MasterCard and ING publicly announced the pilot yesterday, they said it has been running since mid-October.