Mastercard is introducing several new innovations, including the ability to pay for items at compatible vending machines using Masterpass and your smartphone, and the introduction of a new biometric payment card that allows shoppers to use their fingerprint to verify purchases.
Through a partnership with PayRange, customers can now buy beverages and snacks with Masterpass at vending machines across 300 cities in Canada and the U.S. Using the PayRange app on their mobile device, consumers can select the beverage or snack they want to buy and pay for those items safely and securely using Masterpass.
"Convenience is as important to consumers as personalization and customization," says Betty DeVita, Chief Commercial Officer, Digital Payments and Labs, Mastercard. "Paying with a mobile phone seems like such an obvious answer to a pain point that has existed for decades. Whether it's a physical card or a tap of a phone, as mobile usage becomes a way of life, consumers will expect all retail touchpoints to be as mobile-friendly as possible and all commerce experiences to be frictionless."
Customers can store all of their payment information in Masterpass, including card details, shipping information, and payment preferences.
"PayRange thrives on reinventing the consumer experience in the world of automated retail by bringing legacy machines into the digital age," adds Paresh Patel, founder and CEO, PayRange. "The partnership with Mastercard grants millions of consumers access to the rewarding cashless experience across the PayRange network of machines. Gone are the days of digging for loose change or coin jams. With a swipe up on their phone, we're making everyday payments simple-for everyone."
Mastercard Vending and Masterpass APIs on the Mastercard Developers platform enables developers to add vending and digital payment capabilities inside their own mobile application. Mastercard also provides a simulator for developers to test their apps removing the requirement of having an actual vending machine to determine if the app is communicating with the machine.
Masterpass will be available in the PayRange mobile app beginning May 1, 2017.
Meanwhile, Mastercard is innovating in the physical payment card space as well, with the introduction of a biometric card that combines chip technology with fingerprints, allowing cardholders to verify their identity, and complete a transaction, using both methods.
The new card builds on fingerprint scanning technology used for mobile payments today, and can be used at EMV terminals worldwide. A cardholder enrolls their card by registering with their financial institution, after which their fingerprint is converted into an encrypted digital template that is stored on the card. The card is now ready to be used at any EMV card terminal globally.
To pay, the customer places the card in the terminal while also placing a finger on the embedded sensor. The fingerprint is verified against the template and if it's a match, the purchase is successfully authenticated and the transaction approved.
The next generation biometric card has been undergoing trials in South Africa with Pick n Pay, a leading supermarket retailer, and Absa Bank, a subsidiary of Barclays Africa. Additional trials will launch soon in Europe and Asia Pacific. Mastercard is targeting a full, global rollout later this year.
A future version of the card will feature contactless technology.