Card Payment Innovations
NARAYANAN PALANI
??Platform Engineering Lead ???????? Certified AWS, GCP Architect ??Retail, Commercial and Investment Banking ??Best Seller ??FOLLOW
Introduction
There were days when we go to bank branch for every cash transactions to withdraw money and passbooks were are primary document for everything.
Digital innovations made it a lot better in recent years with digital wallet based payments using wrist watch, key chain etc.
Smart Stickers using NFC for Payment!
During 2009, MasterCard sees the approach as a bridge to fully integrated contactless payment capabilities using NFC (Near Field Communications) technology.
Art Kranzley, chief emerging technology officer, MasterCard Worldwide, says: "Having a payment capability on the phone is a great way for consumers to see the benefit of having a payment capability in the phone."
Blaze Mobile has teamed with MasterCard to offer a PayPass sticker that can be attached to any mobile device and used for contactless payment transactions at 141,000 PayPass-enabled merchant locations.
The sticker transmits card information to the merchant's point-of-sale terminal via RFID technology, allowing consumers to "tap" their mobile device on a PayPass reader to complete their transaction. The mobile payment sticker is tied to a prepaid account and is issued by MetaBank.
Transportation For London (TFL) with MasterCard Partnership
Kelly Devine, President, Mastercard UK&I, said:
'TfL and Mastercard's vision in the early 2000s was for a fast and frictionless experience, removing the need to queue for tickets. To date billions of journeys have been safely and securely paid with a tap of a card, phone or even wearable on London's transport network. Since contactless was introduced on TfL buses, we've seen a multiplier effect in the UK where now 75 per cent of all debit card transactions are contactless. After seeing Londoners embrace tapping to pay, many cities' public transport networks around the world have introduced the same technology, so TfL can feel proud that it led the way.'
Since it was first introduced in December 2012, more than 2.5 billion bus journeys have been made using pay as you go with a contactless bank card, mobile or smart watch
OnCar Payment
Mastercard is partnering with General Motors and IBM to integrate payments into OnStar Go, a new AI-powered version of GM’s OnStar system.
When a customer wants to order from a partner restaurant, OnStar Go will prompt the driver to order based on past history, offer personalized options, and make special offers. Making it easier for users to order seamlessly, customize orders, and suggesting added items help companies see higher average order values from in-app payments compared to in-store. Higher order value could increase volume processed on Mastercard products or through Masterpass, which could help grow fee-based revenue for the firm.
Pay to Fuel
?koda Auto is expanding its digital services to include Pay to Fuel. After refuelling, drivers can pay via credit or debit card from the car’s infotainment screen. This service is now available in six European countries, and there are plans to include more countries and fuel stations in the future.
Pay to Fuel is available for all ?koda ICE model series sold in European markets. The service is provided in collaboration with Mastercard, Parkopedia and the German FinTech company called ryd.
But how these many innovations were introduced and invented in short span of ten years? That is nothing but the master mind of MasterCard on 'Idea Box'
Master Card IdeaBox
MasterCard's Innovation Management Team launched programmes in recent years that are enabled innovation funnel across digital payments to bring working prototypes.
IdeaBox is the newest program of Mastercard and it is all about getting ideas off the ground and running through providing a “desert-island kit for innovation.” Through a series of guided steps, employees have the opportunity to really make a difference and potentially create their own startup within MasterCard. If selected, MasterCard will work with the individuals or teams to help scale the project. To get started, employees submit their idea for a new product that would create a breakthrough experience for our stakeholders. Employees provide specifics about their idea, describe what an innovative person they are and disclose their previous achievements .
Once an idea is submitted, the IdeaBox is rolled out in three stages:
The Orange Box (exploring)
Provides you with a framework to explore your ideas further. You will build one idea out and be pitch-ready by the end of the Orange Box Journey. You will pitch your idea to a member of the IdeaBox Panel. Only the best ideas will make it past this stage and be awarded a Red Box. It’s not easy to pass this stage. ($1,000 prepaid card; 60 days to create the pitch.)
The Red Box (building)
Should you be successful to reach this stage, you’re a real survivor, but your journey will be tough! The Red Box is all about moving away from ideas and building out your concept in structured way. Your product will have been validated in the market and supported by a strong business case. Strong enough to attract MasterCard executive support. If you are successful, you will then be awarded a Green Box. ($25,000 prepaid card to use for development.)
Incubation (commercializing)
The Green Box is all about incubation. If you reach this stage, you have secured executive support to “spin-out” your concept into an internal startup within the MasterCard Labs incubation hub. You will own this product and move full time to working on this product within Labs. Ideabox is about creating innovators, not just innovations
Reason being, non cash payments are on surge in recent years and let us take some statistics into our understanding below.
History of Non-Cash Payment Improvements
By 2010, around 85% of payments were made using cash and we know that non-cash payments are the future and lot progress being made in these years.
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Payments innovations take a leap in the last ten years and get into aggressive speed during 2024 with the launch of latest innovations.
Innovation mindset is the key for banking and finance professionals and that is visible from #LinkedinNews latest post:
Top Down Approach in Transaction Banking
End-to-end digital transformation in transaction banking requires top-down commitment, cohesive planning, and a unified purpose for structural reforms. Banks and payment firms must pursue a three-layered approach to overcoming legacy barriers.
Challenges Ahead
Inefficient working capital management is a key challenge when organisations trying uptick on online payments:
Henceforth, it is understandable to see MasterCard's innovation labs focusing on bringing startups with 'creation of innnovation' in mind since roughly two billion people worldwide don't have access to banks or financial services
Financial Inclusion-future of money
Not many people have access to banks or financial services like credit, insurance and investment -- or even a way to formally prove their identity. How do we bridge this divide? Mastercard CEO Ajay Banga sits down with TED current affairs curator Whitney Pennington Rodgers to discuss how innovative public-private partnerships can help bring everyone into the digital economy -- and why COVID-19 recovery hinges on financial inclusion.
Summary
With financial inclusion, payments is going to take leap towards amazing innovations in coming years. MasterCard taking every step to help the society through their support to startups.
Through Start Path-an emerging fintech program, Mastercard supports fintechs that will contribute to the growth of digital payments and financial inclusion, helping to accelerate alternative payment methods, expand acceptance, advance digital identity and more. Mastercard takes a collaborative approach to innovation, building with a developer-first mindset and making it easy for fintechs to grow and scale by tapping into the breadth of our network.?
Either sticker or card or wrist watch, payments are made super easy with these innovations. Let us look at some of the path breaking innovation in coming weeks.
References:
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FinTech | Payments | Innovation | Digital Transformation | Market Expansion
6 个月Tesla pioneered digital payments via App for supercharging...no NFC, no contactless...straight from the App...just C&G (Charge and Go)