At the Mobile World Congress (MWC) 2014, MasterCard today announced the acquisition of C-SAM, a mobile wallet and on-device software vendor.
The acquisition of C-SAM will enable MasterCard to speed the development and deployment of mobile wallets and payment solutions globally, including the rollout of its MasterPass digital service.
In December 2012, MasterCard picked up a small stake in C-SAM.
C-SAM has powered many commercial mobile payments services in India, Japan (DNP), Mexico, Singapore (Starhub), the United States (ISIS) and Vietnam.
The C-SAM platform supports customer-specific offers, loyalty incentives, banking, bill-pay options and non-financial secure transactions.
MasterCard said C-SAM’s on-device application and back-end infrastructure will aid development efforts to enable consumers to use MasterPass both in-store and online across multiple communications technologies, including NFC, QR/barcodes and remote checkout.
“Bringing C-SAM’s mobile expertise into MasterCard will help us launch a wider range of mobile and virtual solutions better and faster – bringing convenience and choice to consumers, while adding value to our expanding partnerships with telcos, governments and merchants,” said Ed McLaughlin, chief emerging payments officer, MasterCard.
Meanwhile, a research by MasterCard and PRIME Research today shows improved sentiment toward mobile payments and rapid growth in consumer use and merchant acceptance. Merchants carry an 88 percent positive rating with many touting mobile acceptance as a competitive advantage. As consumers increasingly turn to mobile options, merchants reluctant to accept these payments may find themselves at a disadvantage.
This finding is a reversal from 2012 when only 32 percent of those discussing mobile payments had used a product. While security concerns around mobile payments still exist, the study demonstrates that consumers and merchants have moved from why use mobile payments? to which mobile payment option should be used?
According to ABI Research, overall revenues from mobile applications, including in-app purchases, will reach $46 billion by 2016, more than five times greater than the $8.5 billion earned in 2011.
MasterCard also announced MasterPass in-app payments, enabling consumers to make secure purchases within a mobile app.
MasterPass in-app payments eliminate the need to store payment card credentials across numerous mobile apps, providing consumers with a fast and simple payment experience.
Forbes Digital Commerce, Fat Zebra, MLB Advanced Media, NoQ, Starbucks Australia and Shaw Theatres Singapore are among the first app providers that will power their in-app purchasing capabilities with MasterPass.
