MasterCard, Visa bring payment to the consumer

MasterCard and Visa are both intent on letting customers pay anyway, anyhow anywhere they choose.



Both of the major financial services providers are releasing new Internet of Things (IoT)- and mobile-enabled payment solutions that will allow consumers to shop from an increasing number of locations, using a variety of touchpoints, with greater security.



First, MasterCard is partnering with Internet security company WISeKey to enable contactless payments on select luxury brand watches and wearables, including watches from Hublot and Bulgari. MasterCard will integrate its payments technology with WiseKey’s Cryptographic Root of Trust for IoT and NFCTrusted technology solutions.



“Our collaboration with WiseKey is a great example of how payments functionality can deliver transformative more value for a variety of device manufacturers, and create safe and convenient shopping experiences for their consumers,” said Sherri Haymond, senior VP, digital payments and labs, MasterCard. “Together, we are using our collective innovative technology and expertise to transform the way people pay for things.”



MasterCard is also launching MasterCard Digital Enablement for Merchants, a tokenization and digitization solution for e-commerce retailers that uses a token, in combination with a transaction-specific cryptogram, to provide EMV-level security for card-on-file transactions.



As a result, consumers get a checkout where they do not have to enter or update payment details for each transaction, regardless of their device or location.



In addition, Visa is expanding its Visa Ready integrated secure payments program to include IoT companies, such as manufacturers of wearables, automobiles, appliances, public transportation services, clothing and other connected devices.



Visa Ready partners receive access to tools and resources, as well as Visa’s Digital Enablement Program (VDEP), which includes streamlined access to the Visa Token Service (VTS) security technology, which allows secure mobile and digital payments anywhere there is an Internet connection.



Initial Visa Ready partners include Accenture, Coin, Giesecke & Devrient, Fit Pay, and Samsung, who will work with device manufacturers including Chronos and Pebble, to help embed secure payments in consumer devices and have those devices certified as Visa Ready.



“More and more, consumers are relying on smart appliances and connected devices to make their lives easier,” said Jim McCarthy, executive VP of innovation and strategic partnerships at Visa Inc. “By adding payments to these devices, we are turning virtually any Internet connection into a commerce experience – making secure payments seamless, and ultimately more accessible, to merchants and consumers.”



MasterCard has been making announcement about expanded IoT and mobile purchases since January, and Visa recently disclosed a major investment in mobile payment processor Square. Both companies are recognizing that consumers are no longer just relying on plastic credit cards to buy products inside physical stores.



Shoppers now want to make purchases wherever they are using whatever device is convenient, and the financial services industry is responding.