Today Mastercard announced their PayPass service, a “digital wallet” that allows consumers to pay through various online channels including the web and their smartphones.
Mastercard’s PayPass is the latest move in the battle to control the online payments industry as consumers move from plastic cards to using their mobile phones and Internet devices.
One of the interesting aspects of PayPass is how it is a direct challenge to PayPal who in turn recently launched their PayPal Here service which threatens incumbent credit card services like Mastercard and Visa along with upstarts like Square.
While its early days yet in the mobile payments space as consumers slowly begin to accept using smartphones and tablet computers to pay for goods and services, its clear the industry incumbents are moving to secure their positions in the market place.
It’s going to be interesting to see how this develops, many merchants will be hoping this competition starts to drive down transaction costs.