Visa, MasterCard eye more contact-less payments
Feb. 24, 2014 – Visa and MasterCard said they’re introducing two new technologies that will give card issuers and merchants more options in facilitating so-called contact-less payment systems into their mobile apps.
They said consumers will be able to use an app to conduct debit- and credit-card transactions by tapping a phone to a store’s card reader. Card information will be stored on remote servers, not on the consumer’s phone, according to a story last week by Associated Press.
The two technologies, announced separately on Wednesday, use a new feature in Google's Android operating system. Before, card information had to be stored on a secured part of the phone. Now, it can be stored remotely. A retail or banking app on the phone then retrieves what's needed to complete the transaction.
Visa and MasterCard are both targeting phones that have a wireless technology called near-field communication.
The technologies will be fully rolled out at the Mobile World Congress wireless trade show next week in Barcelona, Spain.
Associated Press story