Contactless Payments – The pros and cons of tap and go. Paypass кредит
PayPass Frequently Asked Questions - RBC Royal Bank
Back to MasterCard PayPass
- What is MasterCard PayPass?
- How does MasterCard PayPass work?
- Why would I want to use MasterCard PayPass?
- Is MasterCard PayPass secure?
- Are there transaction limits for using MasterCard PayPass?
- Could a signature till be required for MasterCard PayPass purchases?
- How do I know if my card has the MasterCard PayPass feature?
- How will transactions appear on my statements?
- What do I do if my card is lost or stolen?
- Can my card be charged by accident or multiple times?
- Where can I use my RBC MasterCard card?
- Where can I "tap" my RBC MasterCard card with PayPass?
1. What is MasterCard PayPass?
MasterCard PayPass is a "contactless" feature included on all RBC® MasterCard cards for no added fee. It lets you pay for purchases at MasterCard PayPass -- accepting locations without having to swipe your card and in most instances a signature is not required.
2. How does MasterCard PayPass work?
In addition to a magnetic stripe for traditional transaction processing, your new RBC MasterCard card with PayPass includes a small radio antenna. This antenna allows you to tap your card at MasterCard PayPass readers to pay for small purchases – typically under $25. Each merchant has its own maximum limits for PayPass transactions and a signature may still be required in some instances. In the event that your PayPass transaction cannot be completed, swipe your card to complete the transaction with a signature.
3. Why would I want to use MasterCard PayPass?
MasterCard PayPass lets you tap your way through everyday purchases. You no longer have to worry about the exact change or fumbling with coins so speeding through checkouts is a breeze. It´s ideal for small purchases at coffee shops, fast food restaurants, convenience stores and movie theatres. Plus you will always have a record of your transactions which is not always the case for small purchases traditionally made by cash.
4. Is MasterCard PayPass secure?
Your RBC MasterCard with PayPass features multiple layers of protection. Transactions continue to be safe and secure and because the card does not leave your hand, you´re in control. In addition, you´re protected against fraudulent transactions under the MasterCard Zero Liability Policy which means you are not liable for fraudulent charges provided you take reasonable precautions to protect your card, as set out in your RBC Royal Bank MasterCard Agreement. Transactions also continue to be protected with Purchase Security and Extended Warranty Protection.
5. Are there transaction limits for using MasterCard PayPass?
MasterCard PayPass is designed for small purchases – typically under $25. It´s fast, convenient and secure, and perfect for use at grocery stores, pharmacies, gas stations, fast food restaurants, convenience stores, coffee shops and vending machines. Each merchant has its own limit for maximum transaction values using MasterCard PayPass. In the event that your RBC MasterCard PayPass transaction cannot be completed, swipe your card to complete the transaction, as you do today, with a signature.
6. Could a signature still be required for MasterCard PayPass purchases?
Yes. As each merchant has its own limit for maximum transaction values using MasterCard PayPass, it is possible that a signature could be required for purchases if limits have been exceeded. Go ahead and sign the receipt to complete the transaction.
7. How do I know if my card has the MasterCard PayPass feature?
All RBC MasterCard cards contain the PayPass feature. To be certain that your card does in fact contain the feature, look for one or both of these symbols on either the front of back of your card.
8. How will transactions appear on my statements?
Transactions are authorized, processed and billed in the same secure way as all MasterCard transactions. Transactions will appear as a regular line item on your MasterCard statement.
9. What do I do if my card is lost or stolen?
If you card is lost or stolen or if you suspect fraudulent activity on your card, contact us right away:
Within North America: 1-800-769-2512 Outside North America: 514-218-2929 (collect)
10. Can my card be charged by accident or multiple times?
Your RBC MasterCard card must be placed very close to a MasterCard PayPass reader to complete the transaction. Simply walking by a checkout that has a PayPass reader will not cause your card to be charged. In addition, if your card is waved in front of a reader more than once, you will only be billed once.
11. Where can I use my RBC MasterCard card?
While you can use your card anywhere in the world where MasterCard is accepted, you also have the convenience of using your card for PayPass purchases at participating grocery stores, pharmacies, gas stations, fast food restaurants, convenience stores, coffee shops and vending machines. It's fast, convenient and secure.
12. Where can I "tap" my RBC MasterCard card with PayPass?
The list of merchants that accept MasterCard PayPass is constantly growing. Look for the MasterCard PayPass symbol in store or for the most up to date information on where you can wave and pay using your RBC MasterCard card, check out the MasterCard Canada website at: www.mastercard.ca .
The contactless Mastercard credit card
With the international Mastercard credit card you may easily and conveniently pay or withdraw money all over the world, make a reservation at a hotel, rent a car, book and pay for an airplane ticket, shop on the Internet.
- Long grace period – up to 45 days upon all transactions
- An advantageous interest rate - 15%* per annum in BGN, EUR and USD
- Issuing free of charge
- Service fee - 40 BGN per year
- A free SMS every month – with information about the liabilities on the card
- Cashless payment for goods and services online also in Bulgaria and abroad
- Long grace period – up to 60 days upon all transactions
- An advantageous interest rate - 12%* per annum in BGN, EUR and USD
- Issuing free of charge
- Service fee - 90 BGN per year
- A free SMS every month – with information about the liabilities on the card
- Cashless payment for goods and services online also in Bulgaria and abroad
Purchases without any fees
With your Mastercard card you shop without any fees at the trade shops in Bulgaria and abroad, as well as on the Internet.
Contactless payments with the Mastercard card – fast and convenient
With the Mastercard card you may withdraw and pay, as with any other credit card. But you can pay for your purchases in a contactless manner. It is piece of cake – only approach the card to the POS terminal and the payment will be made immediately! The contactless payments are very convenient, when you are in a hurry and make a purchase for a small amount or you do not want to wait for the change. These transactions are also without a charge and are with the same high level of security, as the payments via the chip of the card. For contactless payments, seek the logo
Register free of charge your Mastercard card for E-Secure – for secure payments on the InternetWith the service E-Secure you receive additional protection upon payments with the card on the Internet.
Order your contactless Mastercard
The information about the balance and the movements on your Mastercard card you may obtain in many ways, convenient for you:
The information about the balance on your card and the payments with the card you may obtain via:
- SMS balance – you may check at any time and everywhere the amount you have on your card. You receive the information via SMS to your mobile.
- SMS detective - the best protection from frauds and abuses with your card. You receive SMS immediately, at the moment of payment or cash withdrawal.
Information about the movement and the balance on your account you receive via:
- SMS messages - you receive SMS about the balance on your account and the movements on the account
- Internet banking – you follow free of charge the movement on your account on the Internet. It is sufficient to register for CCB Online – the internet banking of CCB
Additional information about your Mastercard
Upon a stolen or lost cardIn case your card has been stolen or lost, it is necessary to call at CCB or BORIKA, in order to restrict it. At CCB – 24 hours a day at:
- 02/9266 523 and 02/9266 527
- 0889 934 694
AT BORIKA – 24 hours a day (in order to restrict a card at BORIKA it is necessary to know the card number) at phone: 02/8705 149 and 02/9702 616.
For additional information:Call at 0800 11 400 /the conversation is free of charge for clients from the whole country / or 02/9266 500, you may write to us at: [email protected]
* The annual percentage rate for the card with a credit limit BGN 1000 and interest rate 15.00% is 25.44% for each following year (upon an annual fee of BGN 40). Upon the calculation of the annual percentage rate the Bank does not take into consideration the grace period up to 45 days; it is assumed that the whole credit limit is utilized immediately and entirely, provided for term of 1 year and is repaid in 12 equal monthly installments.** The annual percentage rate for the card with a credit limit BGN 5000 and interest rate 12% is 16.61% for each following year (upon an annual fee of BGN 90). Upon the calculation of the annual percentage rate the Bank does not take into consideration the grace period up to 60 days; it is assumed that the whole credit limit is utilized immediately and entirely, provided for term of 1 year and is repaid in 12 equal monthly installments.
Bonus Trink (PayPass) Kartınız Ne Kadar Güvenli ?
Editör | On 21 Mart 2008
Bildiğiniz gibi Garanti Bankası geçtiğimiz sene büyük bir lansman ile Bonus Trink adında bir ödeme aracı piyasaya çıkardı. Kredi kartı, saat, çıkartma, etiket görünümünde müşterilere sunulan Bonus Trink Mastercard tarafından geliştirilen PayPass teknolojisi kullanmakta. Mastercard, PayPass okuyucu bulunan üye işyerlerinde kullandığınız araç hangisi olursa olsun okuyucuya yakınlaştırdığınız anda kasada yazılı bakiye hesabınızdan anında düşüveriyor.
Sadece kol saati ile süpermarkete gidip alışveriş yapmanın pratikliğinin altının çizildiği reklamları görmüşsünüzdür. 35 YTL üzerinde harcamalarda kart sahibinin imzasını gerektiren bu uygulamanın da kart bilgilerini saklamak açısından büyük riskler taşıdığı konusunda herhangi bir bilgilendirme yapmayı atlamış olmalılar.
Garanti Bankası’nın Bonus Trink ile ilgili sayfasında temassız chip olarak bahsi geçen chipler RFID yani radyo frekanslı kimlik etiketleri (radio frequency ID tags) olarak geçiyor. Kart bilgileri radyo frekansı üzerinden okunabilen chip üzerinde saklanıyor.
Şimdi gelelim işin güzel tarafına, aşağıda göreceğiniz videoda Ebay’dan 8 $’a alınabilen bir kart okuyucu üzerinde yapılan ufak modifikasyonlar ile insanların RFID destekli kredi kartı, saati, anahtarlıklarının yanından geçerken kart bilgilerinin hepsini alıp gidebilirler, üstelik kimsenin ruhu bile duymaz.
Kredi kartı dolandırıcılığında bu teknolojinin ülkemizde kullanılmaya başlamasına daha bir kaç ay var gibi gözüküyor ancak cüzdanındaki kredi kartında PayPass özelliği bulunan Bonus kart sahipleri ve diğer Bonus Trink kullanıcıları kalabalık ortamlara girerken kredi kartı bilgilerini ne kadar güvende olduğunu bir sorgulamalarında faydalı olur kanaatindeyiz.
Bir başka önerimiz ise cüzdanınızda PayPass özelliği bulunan bir kredi kartı olup olmadığını tez zamanda kontrol edip karşı karşıya bulunduğunuz riskin net bir tespitini yapın.
Haberimizi verdikten sonra kredi kartlarında yapılan kopyalama girişimleri ve güvenlik önlemleriyle ilgili şimdiye kadarki gelişmeleri paylaşmak isteriz :
Son on yılda kredi kartları hemen hepimizin hayatının bir parçası oldu. Tüketicilerin büyük bir kısmı harcama ihtiyaçlarının ciddi bir kısmını kredi kartları üzerinden gerçekleşir oldu. Kredi kartı işlemlerinde çığ gibi büyüyen hacimler dolandırıcıların iştahını kabarttı ve bu kişiler gelişen teknolojiyi kendi lehlerine kullanarak işlem yaparken gerekli olan kredi kartı bilgilerine ulaşmaya başladılar.
Chip’li kartlar piyasaya çıkmadan bir kaç sene önce manyetik bantlı kredi kartlarına ait bilgiler leblebi çekirdek gibi kopyalanmaya başlanmıştı. Yemek yemeğe gittiğiniz şık bir restoranda hesabı öderken kullandığınız kartınıza ait bilgiler bırakacağınız bahşişten daha fazla bir ek gelir peşinde olan garson tarafından minicik bir cihaz ile anında kopyalanabiliyordu.
Kopyalanan bu bilgileri süpermarketler tarafından bedava dağıtılan indirim kartlarının üzerindeki manyetik bantlara kopyaladıktan sonra bu karlar ile yüksek miktarlı alışverişler gerçekleştirilerek kart sahiplerinde ciddi kayıplara sebep oluyordu.
Bu açığın kapatılması için kredi kartı firmaları tarafından (Visa, Mastercard, Amex vb.) kredi kartlarında chip ve pin kullanımına geçiş ile ilgili altyapı çalışması başlatıldı.
Amerika dışında kredi kartı kullanılan tüm dünya bu konuda çalışmalara başladı. Amerika bu sisteme katılmayı reddetti çünkü Amerika’da kredi kartı harcamaları sigorta güvencesi altındadır ve bir kart sahibi ekstresindeki bir harcamanın kendine ait olmadığını beyan etmesi durumunda bu harcamalardan sorumlu olmaz. Dolayısı ile zaten konuyla ilgili çok büyük meblağlarda sigorta primi ödeyen kart şirketleri böylesine bir altyapı maliyetinin altına girmeyi iyi bir iş kararı olarak görmediler.
Türkiye de BKM’nin önderliğinde bu çalışmalara katıldı. Bankalar, ilgili altyapı çalışmalarına BKM tarafından belirlenen standartlarda başladılar. Buradaki sorun BKM tarafından belirlenen standartların ne kadar güvenli olduğuydu.
Malesef kredi kartı sektöründe faaliyet gösteren firmaların hepsi aynı teknolojik seviyede bulunmuyorlardı ve Chip & Pin projesinde kabul edilen standartlar bir şekilde projeye dahil olan en zayıf halka (teknolojik olarak en yetersiz Issuer veya Acquirer banka)’nın ulaşabileceği standartta oldu.
Şu anda Chip & Pin uygulamasında kartların eskiden manyetik bant üzerinde tuttuğu bilgilerin tamamı ve biraz daha fazlası kartın ön yüzüne basılan chip’e aktarıldı. Bu bilgilere ilave olarak projenin adında yer alan Pin yani dört haneli kart şifresinin de kart üzerinde tutulmasına karar verildi.
Şu anda banka kartları ile pos üzerinden yapılan alışverişlerde kullanılan yöntemde banka kartlarına ait şifreler merkezde tutulmaktadır ve her provizyonda önce merkezden şifre kontrolü ardından da satış işlemi gerçekleşmektedir. Bu metodun kredi kartı işlemlerinde gecikmelere ve müşteri memnuniyetsizliğine sebep olacağına dair ortak görüş nedeniyle Pin bilgisinin chip üzerine yüklenmesine ve burda diğer kart bilgileriyle şifreli bir ortamda saklanmasına karar verildi.
BKM tarafından desteklenen reklam kampanyaları ile chipli kartlara geçişin tamamlanmasının hemen ardından 2007 ikinci yarısından sonra Türk kredi kartı sahipleri chipli kartlarının yurt dışında kopyalanmasıyla ilgili deneyimler yaşamaya başladılar. Gelişen teknoloji ile dolandırıcılar kartların üzerinde bulunan chip’de yer alan bilgilerin şifrelerini kırıp kopyalamayı başardılar; üstelik kart kullanım şifreleri ile beraber.
Bu tür kopyalama yaşayan tüketiciler önceki kopyalama deneyimlerinde daha büyük kayıplar ile karşılaştılar, zira dolandırıcılar bu kart bilgilerini ATM’lerde kullanıp kartın tüm nakit limitlerini bir kaç dakika içersinde kendi ceplerine doldurabiliyorlar artık.
Gelişen teknoloji, kullanıcıları daha büyük risklere maruz bırakacak. TuketiciFinansman.net olarak sizleri gelişmelerden haberder ediyor olacağız.
MasterCard Simplifies Shopping with Launch of PayPass Wallet Services
Platform and Services Enable Merchants, Banks and Partners to Offer the Next Generation of Digital PaymentsAmerican Airlines, Barnes & Noble Among Initial PartnersTo tweet this news, copy and paste http://bit.ly/Kg5vCR to your Twitter handle with the hashtag #MasterCardCTIA and #PayPass
NEW ORLEANS, May 7, 2012 /PRNewswire/ — CTIA BOOTH # 6135 — MasterCard (NYSE:MA) today announced PayPass WalletServices, a new global offering for banks, merchants and partners that will make it faster and easier for their customers to make purchases in stores or online by allowing them to securely pay with a simple click of the mouse, touch of the tablet screen or tap of the smartphone.
To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/55963-mastercard-simplifies-shopping-with-launch-of-paypass-wallet-services
(Photo: http://photos.prnewswire.com/prnh/20120507/MM01703 )
PayPass Wallet Services delivers three distinct components — PayPass Acceptance Network (PayPass Online and PayPass Contactless), PayPass Wallet and PayPass API. These services enable a consistent shopping experience no matter where and how consumers shop, as well as a suite of digital wallet services, and developer tools to make it easier to connect other wallets into the PayPass Online acceptance network.
American Airlines and Barnes & Noble will be among the first merchant partners to incorporate the PayPass Online checkout button on their websites, and American will integrate PayPass Wallet into its mobile application.
“Consumers are looking to pay for goods when, how and where they choose. Merchants want flexibility to easily accept digital payments so they can convert more browsers to buyers both online and in store,” said Ed McLaughlin, chief emerging payments officer, MasterCard. “We realize that when it comes to payments, no single wallet will rule them all. PayPass Wallet Services simplifies the shopping experience while providing flexibility and choice to merchants, banks and consumers.”
PayPass Wallet Services includes:
- PayPass Acceptance Network (PayPass Online and PayPass Contactless) – Provides a globally consistent way to help merchants accept electronic payments across multiple channels whether the purchase is made in a store at the point of sale with Near Field Communication (NFC) technology or online using a computer, tablet or smartphone. PayPass Online also provides consumers with a simple check-out process by eliminating the need to enter detailed shipping and card information with every purchase.
- PayPass Wallet – A full suite of digital wallet solutions enabling banks, merchants and partners to white label their own wallets. It makes online shopping safe and easy by allowing consumers to store payment and shipping information in one, convenient and secure place. The wallet is open, which means that consumers can use American Express, Discover, Visa and other branded credit, debit and prepaid cards.
- PayPass API – Allows partners to connect their own digital wallets into the PayPass Acceptance Network, leveraging MasterCard’s check-out, fraud detection and authentication services and enabling their customers to make purchases wherever PayPass is accepted – online and in store.
MasterCard will make PayPass Wallet Services available to partners in the third quarter of 2012, initially in the U.S., Canada, U.K. and Australia and, subsequently, will include other countries. PayPass Wallet Services will be expanded to the point of sale over time to create an end-to-end shopping experience for consumers providing additional value-added services such as: at-a-glance account information before making a purchase; spending controls and alerts received in real time; and delivery of targeted offers, coupons and enhanced loyalty programs.
“At American Airlines, we’re passionate about giving our customers more flexibility and functionality on their mobile devices,” said Richard Elieson, managing director, Interactive Marketing at American Airlines. “By integrating PayPass into our mobile app, payment transactions become fast and easy and provide the security you would expect from a brand like MasterCard.”
“Consumers are at a pivotal point now where smartphone adoption has exploded and well over 50 percent of Americans now own one,” said Marc Parrish, vice president of retention and loyalty marketing for Barnes & Noble.com. “The technology that will allow customers to make mobile payments at the point of sale has already begun to make a difference, and Barnes & Noble is proud to be leading retail in this technology shift.”
Leading merchant, financial institutions and technology partners that are working with MasterCard to support the launch of PayPass Wallet Services include:
- Financial institutions: Banesto, Bank of Montreal, Commonwealth Bank, Citibank, EURO6000, Fifth Third Bank, Grupo Banco Popular, Grupo BBVA, ICBA, Intesa Sanpaolo, Metro Bank, National Bank of Canada, PSCU, RBS Citizens Financial Group, SEB Kort AB Sweden, Sovereign Bank, Swedbank Sweden and Westpac.
- Merchants: American Airlines, Barnes & Noble, Jagex, JB Hi-Fi, MLB Advanced Media (MLB.com), Newegg, Runningshoes.com, TigerDirect.com and Wine Enthusiast Companies.
- Technology partners: Apriva, Bango, Beanstream, CardinalCommerce, C-SAM, Digital River, Intel, Kony Solutions, Inc., Local Offer Network, mFoundry, Moneris Solutions, Ogone Payment Services, Sage Pay, SIA and Vantiv.
At 8:30 a.m. EDT (7:30 a.m. CDT) tomorrow, Tuesday, May 8, MasterCard will host a conference call for the investment community with Ed McLaughlin, MasterCard’s chief emerging payments officer, to discuss this announcement. The dial-in information for this call is 866-202-4683 (within the U.S.) and 617-213-8846 (outside the U.S.) and the passcode is 26280608. A replay of the call will be available for one week thereafter. The replay can be accessed by dialing 888-286-8010 (within the U.S.) and 617-801-6888 (outside the U.S.) and using passcode 50876454.
The live call and the replay, along with supporting materials, can also be accessed through the Investor Relations section of the company’s website at www.mastercard.com.
About MasterCard Worldwide
MasterCard (NYSE: MA), www.mastercard.com,is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.
About American Airlines
American Airlines, American Eagle and the AmericanConnection® carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,500 daily flights. The combined network fleet numbers more than 900 aircraft. American’s award-winning website, AA.com®, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members and members-elect serve more than 900 destinations with more than 9,000 daily flights to 150 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, and AAdvantage are trademarks of American Airlines, Inc. AMR Corporation common stock trades under the symbol “AAMRQ” on the OTCQB marketplace, operated by OTC Markets Group.
About Barnes & Noble, Inc.
Barnes & Noble, Inc. (NYSE:BKS), the world’s largest bookseller and a Fortune 500 company, operates 691 bookstores in 50 states. Barnes & Noble College Booksellers, LLC, a wholly-owned subsidiary of Barnes & Noble, also operates 641 college bookstores serving over 4.6 million students and faculty members at colleges and universities across the United States. Barnes & Noble conducts its online business through BN.com (www.bn.com), one of the Web’s largest e-commerce sites, which also features more than two million titles in its NOOK Bookstore™ (www.bn.com/ebooks). Through Barnes & Noble’s NOOK™ eReading product offering, customers can buy and read digital books and content on the widest range of platforms, including NOOK devices, partner company products, and the most popular mobile and computing devices using free NOOK software. Barnes & Noble is proud to be named a J.D. Power and Associated 2012 Customer Service Champion and is only one of 50 U.S. companies so named.
Statements in this press release which are not historical facts, including statements about MasterCard’s plans, strategies, beliefs and expectations, are forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date they are made. Accordingly, except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events. Such forward-looking statements include, without limitation:
- The company’s ability to make PayPass Wallet Services available beginning in the third quarter of 2012, including in each of the U.S., Canada, the U.K., Australia and additional jurisdictions thereafter; and
- The company’s ability to expand PayPass Wallet Services over time to create an end-to-end shopping experience by providing additional value-added services.
- The company’s ability to work with various merchants, financial institutions and technology partners to support the launch of PayPass Wallet Services.
Actual results may differ materially from such forward-looking statements for a number of reasons, including those set forth in the company’s filings with the Securities and Exchange Commission (SEC), including the company’s Annual Report on Form 10-K for the year ended December 31, 2011, the company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that have been filed with the SEC during 2012, as well as reasons including difficulties, delays or the inability of the company to achieve its strategic initiatives set forth above. Factors other than those listed above could also cause the company’s results to differ materially from expected results.
Media Relations: Brian Gendron, 914-249-1284, [email protected]
Investor Relations: Greg Boosin, 914-249-4565, [email protected]
Digital Wallet Battle Heats Up As Visa And MasterCard Enter The Game
This week, two of the major players in the credit card industry, Visa and MasterCard launched their online digital wallet services. Known as V.me (Visa’s) and PayPass Wallet Services (MasterCard), both are very similar initiatives which see the companies clamoring to become the credit card of choice for digital transactions, the way they fight today to be the credit card for all the other transactions taking place out there in the real world.
And, to be clear, a “digital” wallet isn’t necessarily the same as a “mobile wallet,” although a digital wallet service could also be housed in a mobile app interface, as both MasterCard and Visa plan on offering in the near future.
While neither of these companies are the types of early stage startups TechCrunch typically favors, their moves will have an impact on a number of companies already operating in this space, like PayPal and Square, as well as those that aim to disrupt the payments industry like Dwolla. Below are the details of what was announced and how the two services compare.
Visa’s digital payments service, V.me, wants to make it easier for consumers to shop online, whether via web, mobile or tablet. The service is effectively a digital wallet, which stores not only your Visa card information, but also your MasterCard, American Express and Discover cards. When you’re on a supported merchant’s website, instead of entering in your payment information and shipping preferences manually (as is par for the course today), you only have to enter in your V.me email and password. The merchant still receives your payment through Visa’s network, but your 16-digit card number is not displayed on the site, which adds another layer of security to the transaction.
In the future, Visa plans to introduce a mobile payments element to the service as well by leveraging NFC, QR codes and “other technology,” which would allow you to tap your phone to a secure reader at the point-of-sale in order to pay for your purchase, scan a QR code or perform some other type of interaction. Support for offers based on your activity and interests will be rolled out later on, too, the company says.
This week, Visa took a major step in making the V.me service a reality. The company announced its beta launch, with its first online merchants, PacSun.com and Buy.com, adding support for the program on its site. The V.me acceptance mark is now visible on the login and checkout pages of both sites.
Visa says it’s currently focused on scaling V.me within the U.S. market, but a global rollout is on its roadmap. Over the coming months (Visa won’t provide exact dates), V.me will launch on a number of other e-commerce sites.
MasterCard PayPass Wallet Services
MasterCard, too, has its own take on digital wallets, and unveiled its new PayPass Wallet service this week. The PayPass Wallet is an extension to MasterCard’s already fairly well-known PayPass brand, which offers tap-and-go, NFC-enabled payments that work via PayPass-enabled (NFC) phones, cards, key fobs, or mobile tags at over 441,000 locations worldwide. The same credentials stored in the digital wallet for online payments (PayPass Wallet) can also be accessed for tap-and-go purchases on an NFC-enabled phone through a mobile app.
Like V.me, MasterCard’s PayPass Wallet is an open solution, and allows consumers to add their Visa, American Express and Discover cards, whether credit, debit or prepaid. It also keeps your shipping info on file, for faster online checkouts. And, like V.me, PayPass Wallet is making a splash with some big-name launch partners. In this case: American Airlines and Barnes & Noble. Both merchants will incorporate the PayPass Online checkout button on their websites, and American Airlines will go a step further and integrate PayPass Wallet into its own mobile application.
Other merchants committed to the solution include Jagex, JB Hi-Fi, MLB Advanced Media (MLB.com), Newegg, Runningshoes.com, TigerDirect.com and Wine Enthusiast Companies.
Several banks are on board too, including Banesto, Bank of Montreal, Commonwealth Bank, Citibank, EURO6000, Fifth Third Bank, Grupo Banco Popular, Grupo BBVA, ICBA, Intesa Sanpaolo, Metro Bank, National Bank of Canada, PSCU, RBS Citizens Financial Group, SEB Kort AB Sweden, Sovereign Bank, Swedbank Sweden and Westpac.
The solution will be offered as a white label, meaning banks, merchants and other partners can use the PayPass Wallet platform within their own digital wallets. This option will go live by Q3 2012, initially in the U.S., Canada, U.K. and Australia.
Finally, like V.me, MasterCard’s PayPass Wallet will roll out to point-of-sale and as a mobile application in the future, but MasterCard isn’t providing exact timeframes on when those solutions will arrive. The mobile app, though, is not necessarily being targeted at consumers, but at the banking partners.
“This initiative provides issuers with a turnkey solution to quickly launch a wallet with their own branding using our reference wallet or the freedom to connect their own wallet into our PayPass network,” explains Ed Olebe, Senior Vice President and Group Head, Emerging Payments, MasterCard. “PayPass Wallet Services will accept all credit, debit and prepaid MasterCard, American Express, Discover and Visa cards as long as the merchant or financial institution accepts those cards,” he says.
Those with an NFC phone can continue to tap-and-go as they do now, but soon, both NFC and non-NFC users will be able to take advantage of the other benefits of the PayPass platform, including at-a-glance account information which you can peek at prior to making a purchase, spending controls, real-time alerts, and, of course, coupons and targeted offers.
The above solutions from the top two credit card companies are notable because of their news this past week, but they’re far from being the only competitors in the space. Outside of startups like Square and PayPal, mentioned above, Google is dabbling with its own mobile wallet/mobile checkout play called Google Wallet and the U.S. mobile carriers are ramping up a mobile payments initiative called Isis. (Worldwide, other carriers have their own programs, too).
However, in terms of credit card companies, American Express is another important player in the space. With its previously announced Serve platform, it’s not only competing head-to-head in the online payments space, it’s also working to enable other features like peer-to-peer payments, for example.
With so many similarities between the services and some confusion on branding, the problem will soon become one of too much choice. Should you go with V.me or MasterCard’s PayPass (or a PayPass Wallet rebranded by your bank, perhaps?), Serve or PayPal? Wait, PayPal works at point-of-sale too? Does Google Wallet work on my phone? What’s Isis?
Although the names of the credit card companies are already familiar, the programs themselves are not. All the players will need to work to deliver clear messages to consumers about what they can and cannot do.
pros & cons of PayWave/PayPass
To tap or not to tap, that is the question when using Visa PayWave or Mastercard PayPass.
Visa PayWave and Mastercard PayPass are new ways to pay for your everyday purchases without your physical card touching anything. To use this feature you need to wave your card in front of a contactless terminal and your transaction will be processed. There’s no need to sign a receipt or input a PIN to authorize a transaction.
What is Near Field Communication (NFC)?
Near Field Communication, abbreviated NFC, is a technology that enables your mobile phone to securely transmit and receive information over a short range, typically requiring a distance of 4cm when making a payment. It is an upgrade of the existing radio-frequency identification (RFID) which combines the interface of a smartcard and a reader into a single device.
Visa PayWave and Mastercard PayPass have NFC tech that make contactless payment possible. Referred as ‘tap and go’, consumers can then either wave or tap their credit cards at counters with contactless terminals without the need of keying a PIN or signing a receipt.
What are the pros and cons of PayWave and PayPass?
- Convenient as you just need to “tap and pay” using your credit card or mobile phone without keying in a PIN or signing a receipt.
- Gives you peace of mind as you are protected against fraudulent transactions.
- Reduces threat of hackers who may scan cards and steal valuable information as NFC uses data encryption when sending sensitive information.
- Cost and time efficient for the average consumer.
- You do not have to worry with typing errors (such as incorrectly typing in your PIN) and connection is quicker on the contactless terminal.
- Retailers no longer have access to your credit card information.
- You are able to keep track of rewards and use points for your purchases made in coffee shops or miles redemption. Some banks even offer cash back and prizes when you use this feature.
- Convenient and quick checkout payments means lesser queues and lining up.
- Only a few yet have adopted to this technology so it might create confusion or frustration among users. Not all consumers are educated on this technology.
- Only consumers with smartphones or those with PayWave/PayPass credit cards can use this technology.
- You may lose your credit card and your account may be compromised.
- Risk of spyware or malware attacks and other viruses like any computer device in the terminal.
- You can’t change the limit or choose the limit per transaction as chosen by the bank.
Frequently asked question: I’m a small business owner – should I get a contactless payment system?
If you run a small business, updating your card reader to one that offers contactless payments provides your customers with faster and more convenient card processing. However, upgrading could attract additional upfront fees and training to get used to the new system. Compare different card payment systems and weigh up the potential benefits versus the costs to decide if this option is right for your business.
- Eddie is the Divisional President: Mastercard Australasia
- He was previously SVP at Mastercard Southern Africa
“PayPass is a fast, convenient and safe way to pay for purchases of less than $100 and involves a simple tap of a card against a contactless reader, making it ideal for use when customers would generally use cash,” says Eddie Grobler, Divisional President of Mastercard Australasia said in a press release.
“Contactless is the way to make and accept payments – it’s quicker and more convenient for consumers and allows merchants to accept more payments at peak sales times. It helps reduce the delays caused by queuing or searching for change and, with consumers already noticing the benefits, we believe it will be available across a large number of retailers in the next couple of years.”
Both systems contain a technology called NFC and requires you to hold the card within 4cm from the card reader and carries a unique security code per transaction for fraud protection. It carries the same layers of security as any other Visa or Mastercard Chip card and is backed by their respective Zero Liability Policy.
While it is convenient and efficient to have this payment method in place, a lot of consumers have questioned the security implications of using this technology. But Mr Grobler has announced there are plenty of security measures in the place.
“For online purchases, merchants will be required to offer Mastercard SecureCode authentication, or equivalent, for items over $200 and for purchases at the point of sale, we are ensuring that all cards and terminals will be EMV capable.”
“These measures will add an additional layer of security to an already robust system.”
“Trust is at the very core of our business. We want our cardholders to feel safe about using their cards which is why we are continuing to invest in stringent security measures. Between now and 2013 security for online payments will be a primary focus, which is great news for merchants and consumers alike.”
What are other people saying about PayPass and PayWave?
What do you think about PayPass and PayWave? Let us know by tweeting to @finder, or post a comment below.
Boku Expands Mobile Payments Offering with MasterCard Prepaid and PayPass
Partnership enables consumers to shop, receive and redeem personalized offers at MasterCard merchants through their mobile phone using Boku Accounts
PURCHASE, N.Y., and San Francisco, Calif.; February 23 2012 – MasterCard (NYSE: MA) and Boku, Inc., a leading global provider of on-line mobile payments, announced today a partnership that will enhance the shopping experience for consumers by allowing them to make payments, receive discounts and targeted offers, and monitor spending – all via their mobile phones anywhere MasterCard is accepted.
Offered through a mobile subscriber’s mobile network operator (MNO) BokuÒ Accounts with MasterCard Prepaid gives consumers a convenient way to pay while on the go. Account holders use a MasterCard Prepaid card or PayPass-enabled device to make purchases anywhere MasterCard is accepted with a simple swipe or tap.
“For more than a decade, MasterCard has pioneered technology that’s turned mobile phones into devices for making safe, easy payments across a global network,” said Mung Ki Woo, Group Executive, Mobile at MasterCard. “This partnership with Boku gives MNO customers the power and convenience of MasterCard mobile prepaid with PayPass to make purchases in stores or on-line at millions of merchants worldwide with their mobile phones or companion cards.”
Boku Accounts enables merchants to create easy-to-manage loyalty programs as well as targeted offers to reach customers through mobile apps, SMS text messages, push notifications or e-mails. The platform also offers consumers real-time visibility into spending and budgets tied to their account. The online campaign management system of the Boku Accounts platform also provides merchants with sophisticated analytics so they can manage and modify these offer programs over time to maximize consumer reach and repeat business.
“Boku Accounts brings together the best parts of mobile payments and technology, leveraging NFC, smartphones and global payment networks for a better consumer experience, using the device in your pocket to improve every transaction you make, anywhere in the world,” said Ron Hirson, Boku President. “Working with MasterCard gives our MNO partners confidence that their subscribers can make a payment anywhere MasterCard is accepted.”
The Boku Accounts MasterCard Prepaid card is issued by IDT, which is a regulated bank, licensed by the Financial Services Commission (FSC), Gibraltar, under the Banking Act 1992, pursuant to a license from MasterCard International Incorporated. Issuing banks will vary based on geographic region.
About MasterCard Worldwide
MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the conversation on The Heart of Commerce Blog and subscribe for the latest news.
Boku, the leading online mobile payments company, brings bank-grade payments technology and mobile users together, creating a trusted, accessible platform for consumers, merchants and carriers alike. Based in San Francisco with offices in Europe and Asia, Boku reaches nearly 4 billion consumers worldwide, across 66 different countries. . Leading Silicon Valley entrepreneurs and venture capitalists fund Boku including Andreessen Horowitz, Benchmark Capital, DAG Ventures, Index Ventures and Khosla Ventures. For more information visit: www.boku.com
Boku website: http://www.Boku.comMedia Kit: http://www.Boku.com/press/
For Boku, Inc. in the United States:David Speiser, 650-515-6635[email protected]
MasterCard Media Relations:Brian Gendron, 914-249-1284[email protected]