Mastercard Outs One Digital Wallet To Rule Them All, Aussies To Get Exclusive First Trial

Digital wallets, contactless cards, EFTPOS and online shopping are all pretty annoying when you think about it. In that list alone, you have four different ways you need to interact with stuff to hand money over from one party to another. Mastercard wants to take the hassle out of paying for stuff, and has announced what it's calling "Masterpass", and the first market set to test it out is Australia. Yipee!

So what is Masterpass?

Masterpass is Mastercard's attempt to unite all the different payment methods under the one umbrella for the payer. NFC payments, QR code payments and card-based payments will all be combined in the Masterpass app to make paying for things simple.

For example, when you want to shop online, you log-in using your Masterpass account and because it already securely stores your card and shipping information, buying something with one-click is apparently meant to just be one-click and not ten. 5900 merchants are to support Masterpass online as it launches.

Paying for stuff at checkouts is also going to be supported by Masterpass, with several big partners already signing on to support the new digital wallet. Westpac, Commonwealth Bank, NAB, ME Bank, JB Hi-Fi, AHL, Harvey Norman, Roses Only, Merchant Warrior and Paycorp will all support Masterpass at the checkout when it launches.

You'll also get special offers from Masterpass to reward your loyalty.

Masterpass is set to hit Australia in March.


Comments

    So you'll be paying for everything on a credit card essentially.

      Im pretty sure this will extend to any paypass enabled card or account including debit

      you can get a debit card and just use your own money

        Indeed you can and my bad I read the article wrong. This app links your accounts rather than being an account. I still see some sort of fee for it happening though.

          In Australia there are several billion dollars worth of "small" transactions each day. And these transactions are almost entirely carried out using cash. Corporations have been salivating since last century at the prospect of being able to take a cut.

          Same 1.2%-ish fee as always - paid by the merchant.

    The only methods of payment I use are cash, debit card, and paypal. This might be great for both of the guys in the world who use all of these digital systems mentioned, but for me it is the opposite of simplification and would just mean one more method to juggle. Especially when it's never going to be supported everywhere.

    Here's a little secret to how to effectively use credit cards to your benefit, not the banks.
    Get a card with the LOWEST credit limit they'll let you have. It'll probably be around $1500-$2000.
    Spend on the card all month. Use internet banking to monitor your spend. Keep cash in your account all month instead of spending it. Maybe even earn 0.5% interest on it!
    At the end of your statement period, PAY OFF THE CARD IN FULL.
    Do this every month. You'll get rewards points for the spending, you won't pay any transaction fees and you won't pay any interest if you pay in full every month.

    Having a credit card is not free money, you have to pay it back. Just pretend that the money you have in the bank isn't yours, so don't spend it. Spend on your card and pay it off in full.

    After doing this, and clocking up rewards points for years (I basically forgot that I was getting them) I recently got $2500 worth of Harvey Norman gift vouchers for free.

    Credit cards are only evil if you keep a running balance on them and pay 15-20%+ interest.

    its not going to stop typing on small screens as the video suggests, unless they have access to the nfc chips on mobile phones which i doubt. you will have to log in to the app one way or another

      You are probably right, this is where I see MasterCard setting up a relationship with one of the big manufacturers, eg HTC or Samsung. This could be a good opportunity for both parties - the handset manufacturer gets a small slice of the pie but they get to market this new feature. We all know Apple will end up doing something on their own so no point in hoping there.

      I would love to use my phone for payments

        so do i. i just dont see a 3rd party solution like this when everyone else does nfc...unless they sell a case ala kaching

      I concur. These are the same roadblocks that caused Kaching to fail. Real news would be that someone has solved them.

    I might be a minority, but I don't have any hassles paying for stuff as it is?

    I don't mind buying something online and having to click a few buttons to pay through PayPal.. Sometimes It gives me time to think by the time i get to the confirmation screen and I realise I don't really need the item anyway.

    Saves me impulse buys but I guess the merchant would love more of those. I am quite happy with where the world is in terms of paying for items both in person and online.

    "you have four different ways you need to interact with stuff to hand money over from one party to another. Mastercard wants to take the hassle out of paying for stuff"

    http://xkcd.com/927/

      That moment when you see the xkcd link and know exactly which comic the person is referencing before you even click on it. Priceless.

    I don't see much benefit in the general idea of pulling out your phone to pay for something vs pulling out your wallet. I have paypass on my debit card, which works just fine. The real benefit for me would be in integrating the phone software with the process (an arse of a job if you're an iphone user). Be pretty cool though to swipe your phone, and have the app instantly launch, show the amount you've just spent, new balance, total rewards points etc. Dunno much about the NFC system but I assume it's not 2 way communication, so probably pie in the sky dreams...

      it is 2 way but Google hasn't released that level of access to developers so Banks can't make NFC payment apps yet.
      The only ones that exist at the moment use separate NFC chips in cases.

    Hmm finally a use for the NFC chip in my HTC One X

    At the moment, I just rub my arse (where I keep my wallet) on the eftpos doohickey.
    Seems to work

    Cash is good. the notes are rectangular pieces of plastic. And you dont have to worry about the monthly letter.

    I went to Korea last year. I was incredibly happy when I could buy a hot dog from a little hut in the middle of a ski run for $3 using my debit card which at the time had no international transaction fees.
    That is where the world should be heading. You might have multiple cards or multiple accounts, but screw cash. It's annoying.

    obviously a response to this: http://phandroid.com/2013/02/25/samsung-visa-paywave/
    if they can make it work across devices without needing to partner with someone, their potential market is huge

    Going to have to start trading tangible items with my dealer to buy my drugs soon

    Whether it is MasterCard's or Visa's version of their new digital wallets, it will mean even more security for payers and the payments processors than the existing card systems as merchants will never get the credit card number; and more importantly for merchants, these two payment processors have dynamic connections to their payer’s source of funds: they know if the payer actually has the funds to pay … And more importantly …

    Goodbye clunky PreyPal—it has not been nice knowing you ... http://bit.ly/UVXx53

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