Merchant services company MasterCard has teamed up with Dutch bank ING to test a payment system that takes advantage of the secure element in near field communication (NFC) smartphones without using the NFC short-range communications technology itself. According to NFC World, the two companies are working together to test the customer experience while using either a smartphone, tablet or personal computer for online purchases.
The trials involve the MasterCard PayPass app stored on the secure element in the customers’ NFC phone. There are two scenarios being examined – one involves an EMV-compliant cryptogram being generated and sent directly to the merchant’s payment gateway for processing, while the other requires shoppers to scan a secure QR code from the merchant, which will securely link the PayPass application on his or her phone to the merchant’s online shopping cart.
“In both cases, coupons and vouchers can be applied in real-time as the consumer shops, and e-receipts presented upon successful payment,” a MasterCard source told the news source. “The trial promises to deliver a similar user experience in both the physical and digital world and a comparable level of security to a regular EMV transaction.”