MasterCard pilots new NFC mobile payment solution

MANILA, Philippines - MasterCard Worldwide recently announced collaboration with Gemalto, a world leader in digital security, to pilot a Near Field Communications (NFC) device equipped with the Gemalto Upteq N-Flex Solution that supports MasterCard PayPass.

The Upteq N-Flex solution is an industry first as it is able to function on multiple mobile handsets, helping provide a path to ubiquity of handsets supporting NFC.

The solution is also the first of its kind conforming to the Single Wire Protocol (SWP) as endorsed by the GSM Association (GSMA).

The Upteq N-Flex wafer-thin device can be inserted into an array of existing handsets to transform them into a payment device.

According to a study on mobile payment markets conducted by Juniper Research, gross transaction value of mobile payments is expected to reach $300 billion globally by 2013, indicating the significant revenue potential the segment represents for banks as well as services providers.

To spur market growth, MasterCard has been working with the industry to establish infrastructure, business models and standards for mobile payments.

The initial trial of this mobile payment solution kicks off in Singapore, as MasterCard collaborates with DBS Bank, one of the largest financial institutions in Asia, EZ-Link Pte Ltd., the leader in cashless payments in the public transportation business in Singapore, and StarHub, Singapore’s fully integrated info-communications provider.

DBS and EZ-Link FEVO MasterCard cardholders can look forward to using their existing StarHub mobile phones to make everyday payments.

“Consumers in Asia are quick to embrace new banking technology in order to keep pace with their lifestyles. DBS is proud to be not only the first bank in Asia but in the world to offer its MasterCard cardholders a new payment option that will certainly enhance our range of innovative offerings to our customers,” said Rajan Raju, group executive and head of the Consumer Banking Group at DBS.

“The NFC-enabled mobile will give our customers greater choices to shop and pay in a more convenient manner,” Raju added.

“This innovation is aimed at accelerating mobile NFC payments in the region. MasterCard PayPass offers consumers the convenience of being able to pay with their mobile phones, quickly and conveniently, without fumbling for change,” Ajay Bhalla, executive vice president for Southeast and South Asia of MasterCard Worldwide.