MasterCard goes mobile

MasterCard has launched MasterCard Mobile, a payment platform that will enable MasterCard and Maestro cardholders to use their PIN-based debit, cheque or credit cards issued by Absa, Nedbank and Standard Bank, and a mobile phone to pay for online purchases.

To provide even greater access, convenience and security for online shoppers, MasterCard, in collaboration with local mobile-centric payments and financial services company – Oltio ‚ have introduced MasterCard Mobile to the South African market.

MasterCard Mobile is a payment platform that will enable MasterCard and Maestro cardholders to use their PIN-based debit, cheque or credit cards issued by Absa, Nedbank and Standard Bank, and a mobile phone to pay for online purchases.

A key feature of MasterCard Mobile is that it enables these Maestro cardholders to make secure online purchases for the first time, which in the past has not been the case. In addition, the relevant MasterCard debit and credit cardholders will also be able to use the payment platform.

‚The MasterCard Mobile innovation will enable millions of South Africans to make secure purchases using their PIN-based bank cards. It’s a convenient and cost-effective payment mechanism that doesn’t require customers to open yet another bank account. This pioneering technology means consumers can benefit from the competitive prices, convenience and variety associated with buying online, simply by registering their MasterCard or Maestro PIN-based credit or debit card to transact,‚ says Terry Timson, CEO of Oltio.

To make an online payment using MasterCard Mobile, a cardholder can select to use the MasterCard Mobile payment option on participating e-commerce sites ‚ similarly to how they would select to pay by credit card, debit card or EFT. For first-time users of MasterCard Mobile, the customer will be securely prompted to register their payment card of choice, where they will enter their PIN-based MasterCard debit or credit card or Maestro debit card number, the expiry date of the card and select the account type (current, savings or credit). They will also be required to enter their mobile phone number.

On the payment page, the consumer then confirms the purchase basket and selects MasterCard Mobile as the payment option of choice, and enters his/her pre-registered mobile number. The cardholder is then prompted via a secure message to enter their PIN and where necessary the CVC number on their own mobile device. If the PIN is correct, and sufficient funds are available, the purchase is authorised through the MasterCard Mobile Remote Payment gateway.

The merchant receives the confirmed transaction result and the customer receives confirmation and a receipt.

‚According to the results of the latest MasterCard Worldwide Online Shopping Survey released yesterday, online shopping has increased significantly in South Africa and continues to show potential for growth – with 58% of respondents saying that they use the Internet for shopping. Price, convenience and security were the key factors shoppers considered when making an online purchasing decision. The MasterCard Mobile solution provides another secure and convenient payment platform for these consumers, and those who have previously been unable to use their Maestro debit card online,‚ says Anna Jones, Division President at MasterCard Worldwide in South Africa.

‚MasterCard Mobile is currently being piloted and we are looking to roll-out the platform to most e-commerce sites in South Africa in the near future. In addition, MasterCard Mobile is currently used by MTN for air time purchases,‚ adds Timson.

‚MasterCard’s vision is to create a world beyond cash, and solutions such as MasterCard Mobile assist more consumers and merchants in reducing the amount of cash that they use, which is unsafe and costly to carry and handle,‚ says Jones.

‚While providing greater convenience, MasterCard cardholders have peace of mind knowing that once registered with MasterCard Mobile they no longer need to share their card details online. Instead, the information remains secure with MasterCard Mobile which verifies and concludes payments on the cardholder’s behalf. And importantly, the MasterCard Mobile solution does not levy any additional fees to the cardholder and, unlike EFTs, the payment is made instantly,‚ she concludes.

MasterCard Mobile can also enable person-to-person payments and be used at traditional/brick-and-mortar merchants that are MasterCard Mobile-enabled for purchases, although this functionality is currently not available in South Africa.

How MasterCard Mobile works

Step 1: A merchant registers with their local payment service provider (PSP) to use the MasterCard Mobile Remote Payment (MMRP) service‚ and makes it available to consumers as a payment choice/option.

Step 2: The consumer shops at a MasterCard mobile-enable merchant and makes a purchase.

Step 3: The merchant captures the customer’s basket of purchased goods.

Step 4: The consumer confirms the purchase information, selects MasterCard Mobile as the payment option of choice, and enters his/her mobile number.

Step 5: For first-time users of MasterCard Mobile, the user will be securely prompted to register their payment card of choice, where they will enter their PIN-based Maestro Debit MasterCard or MasterCard Credit card number, expiry date and the account type (current, savings or credit).

Step 6: A secure message will be sent to the customer’s registered mobile phone with a request to enter the bank card PIN and where necessary the CVC number to authenticate the transaction.

Step 7: If the correct information is supplied by the cardholder and sufficient funds are available, the transaction will be approved.

Step 8: The merchant receives the confirmed transaction result and the customer receives confirmation and a receipt.

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