MasterCard demonstrates new ways to pay online using mobile devices

The card company uses a secure element stored on a phone to protect online transactions

MasterCard is testing new ways to make online transactions more secure with its PayPass application and a mobile phone, including using QR codes to secure the transactions.

The card company is cooperating with Dutch bank ING Group on a trial in the Netherlands that will test two ways of securing online transactions. They both use a secure element on the mobile device and MasterCard's PayPass application to offer the same level of security as when paying in a store with a chip-equipped card, according to joint a statement.

In the first scenario, the shopping is done using the phone and the user enters a PIN to authenticate the transaction. The transactions are secured by sending an EMV-compliant cryptogram from the device directly to the merchant's payment gateway for processing.

EMV (Europay, MasterCard and Visa) is a standard for credit and debit payment cards based on chip card technology.

In the second scenario, the shopping is done on a PC or tablet, but the user can then pay on their phone using a secure QR code that connects PayPass application with the online shopping cart.

In both cases, coupons and vouchers can be used as the consumer shops, as well.

This year has seen MasterCard stepping up its mobile push.

In May, MasterCard announced PayPass Wallet Services, which is aimed at banks and merchants that want to offer mobile payments. It includes the PayPass wallet and APIs for partners to launch wallets under their own brand and integration with the PayPass Acceptance Network.

The company is also working with NTT Docomo to allow the Japanese operator's subscribers to make mobile payments when travelling abroad next year.

The Dutch trial has already begun and will run through the first quarter of 2013. A total of 160 users are taking part and they are using Samsung's Galaxy S III, according to ING.

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags mobilesmartphonesinternetmobile applicationse-commerceconsumer electronicsMobile OSesMasterCard Worldwide

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?