Credit card giant MasterCard (NYSE:MA) is hoping to get rid of the actual card.
The card company is hoping that a new digital payment service — called MasterPass — will eliminate the need for physical plastic, reports Dow Jones. The company says that its new payment system will make it easier for consumers to pay for items online, with mobile devices and even in stores without actually using a card.
Under the new system being announced today, customers can store their card information in one software system and use it to pay at any subscribing shop. Users with the system on their smartphones will be able to simply wave their phones within the field near the register to have their payment recorded. The system even will allow consumers to pay with competing credit card companies if they set it up that way.
The move is the latest in the development of the “digital wallet” concept that is designed to make it easier and more convenient for customers to pay both in person and online. A MasterCard executive said more than 85% of transactions are still performed by cash or check and this system will allow the company to go after those payments.