It comes to know that Visa and MasterCard both are introducing Internet-based technologies for android users so that they can easily purchase things from retail stores without using their credit card. On Wednesday, both the technologies have declared that they will offer merchants and banks some extra options for integrating alleged contact-less payment systems into their mobile applications.
We all know that customers are making use of application when they need to make purchase. By tapping the phone to a store’s card reader, they are using the application. Now, both the technologies are tapping a new feature in Google’s Android OS.
Before we all need to store card information on a secured part of the phone, but now, one can store it remotely. Banking as well as retail application on the phone and after that recovers what’s required to complete the transaction. Both the firms will also offer some major tools for card issues to support Host Card Emulation (HCE) on user accounts.
When it comes to Visa, the company said that it is going to offer app developers with a complete service, with card information stored on Visa’s servers while MasterCard said that it will soon publish technical details by the end of June in order to help all the companies to utilize a new Android feature that is called Host Card Emulation. Currently, MasterCard is testing the technology with two major banks – Banco Sabadell in Europe and Capital One in the U.S.
According to James Anderson, a head for emerging payments at MasterCard, “The use of HCE provides a very attractive way forward to launch an increased number of NFC-based offerings”.
Both the firms are mainly focusing on those devices that have wireless technology that is known as near-field communication. There are lots of android devices that have this technology, but when it comes to remote storage capabilities, it only comes with KitKat version of Android. However, Apple’s iPhones do not have NFC, but cases are obtainable that allow that technology.
Moreover, Visa also said that it is also looking to make tools that are obtainable for app developers to incorporate payment capabilities. After getting this technology, the customers can use smart-phone rather than nay plastic credit card at stores.
According to various experts, contact-less payments offers more security protection as compare to plastic card. However, the number of card is stored in encrypted form and can be easily disabled remotely if a phone is lost or stolen.
As per the Sam Shrauger, a Visa’s senior vice president for digital services in developed markets said “having payment information on remote servers is cheaper and easier to operate than using the phone’s hardware”. Partners of both the companies are extremely excited with this news as their customers are able to make easy payments without ever having to look for their wallet or credit card.
Publish on Feb 25 2014