MasterCard does not see mobile commerce platforms as a replacement for credit cards
Mobile commerce is gaining traction throughout the world, but MasterCard’s global chief, Ajay Banga, is not yet convinced that people should replace their credit cards with smartphones. Mobile commerce has managed to attract support because of its convenient nature, allowing consumers to shop for and purchase products using only their mobile devices. This has provided consumers with an effective way to shop online from wherever they are and has streamlined the e-commerce experience for some retailers.
Mobile commerce platforms need to offer more value
According to Ajay Banga, more value should be added to mobile commerce platforms. Currently, the majority of these platforms only provide consumers with the ability to pay for products and services using a smartphone. This works in much the same way they credit cards do, which makes mobile commerce platforms somewhat redundant. Moreover, mobile platforms have not yet had the time to become as secure as credit cards, which could expose some consumers to risks when participating in mobile commerce.
MasterCard notes the declining attention surrounding mobile commerce platforms
While MasterCard may not be cavalier when it comes to mobile commerce, the company has inserted itself into the mobile sector by supporting platforms on prominent mobile operating systems. MasterCard partnered with Apple for the launch of its new mobile payments service, called Apple Pay. The new service was launched in October of last year and attracted attention around the world, but Ajay Banga notes that much of this attention has dissipated. Banga suggests that this will be a similar trend that will follow other mobile commerce services, such as Samsung Pay, which is expected to be released later this year.
Company continues to show support for mobile payments
MasterCard has expressed support for mobile payments, but the company does not believe that new platforms will be replacing credit cards in the foreseeable future. These platforms have a long way to go before consumers can be as comfortable with them as they are with credit cards. Improving the security of mobile payments could go a long way in garnering the favor of consumers.