MasterCard Aims to Make Any Gadget a Payment Device
Yesterday, MasterCard announced that consumers will soon be able to pay for products from their cars, fashion accessories, technological devices, wearables, and categories that have not yet been imagined. This program will provide a high level of security, and give shoppers the freedom to pay using the device or, what MasterCard calls, the thing that is most convenient for them.
The program is made possible by the Internet of Things (IoT), which is the hyper-connected world that allows every device, from washing machines to cell phones, to access the web. According to Cisco, 50 billion devices will be connected by 2020.
“As more and more ‘things’ become connected, consumers will have endless possibilities when it comes to how they pay, and will need all of their devices to work seamlessly together,” said Ed McLaughlin, Chief Emerging Payments Officer at MasterCard. “This program eliminates the boundaries of how we pay by delivering a secure digital payment experience to virtually anything–rings, fitness and smart bands, car key fobs, apparel, and whatever comes along next.”
Capital One is the first card issuer that has embraced the program through its Capital One Wallet. The Wallet will authenticate the cardholder and provide security and token management. Real time transaction notifications will be used to identify the device used in each transaction, which makes it easier for consumers to detect unauthorized purchases.
Currently, MasterCard plans to begin rolling out the program in the United States in 2016 and expand to other markets shortly thereafter.