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New player joins mobile payment ranks


Another company is offering in-app mobile purchase functionality, but this time it’s not a retailer or a technology provider.

U.S. bank Capital One is partnering with MasterCard and Visa to offer contactless mobile payment capability in its Capital One Wallet app. Leveraging the MasterCard Digital Enablement Service (MDES) and Visa Token Service (VTS) platforms, Capital One will use NFC-enabled Android phones to transmit a secure payment token to the point-of-sale.

Besides payments, the Capital One Wallet app offers additional features, including real-time notifications for all transactions, instant rewards redemption options, and access to balance and transaction history. Capital One customers are able to use their credit and debit cards directly from their phones to make contactless payments for purchases at retailers that accept contactless payment.

Capital One’s entry into the increasingly crowded mobile payment fray is the latest sign that instant payment via mobile device is an idea whose time has come. Although usage rates of more established mobile wallet solutions like Apple Pay and Android Pay are lower than many experts had expected, the wide availability of mobile payment will inevitably produce consumer acceptance.

If other major banks follow Capital One’s lead, the Apples, Googles and Samsungs of the world may find themselves facing a surprise new adversary in the battle for mobile payment domination.

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