MasterCard has introduced a program to create contactless payments in the next five years allowing cardholders to pay for products and services without the need to enter their PIN.
The ‘tap’ and ‘go’ standard will enable merchants, customers, and governments around the globe to enjoy next-generation payments technology which offers increased reliability, security, and faster payments.
The program, which begins later in 2018, will entail upgrading cards and terminals across Africa, Europe, Latin America, the Middle East, and Asia Pacific to connect more people with contactless card payment technology.
“Our vision is a world where everyone can simply and safely tap their card or deviMasce when paying in a store and quickly be on their way,” Ajay Bhalla, chief security solutions officer MasterCard said. “This marks a significant step towards greater consistency, security and speed for everyday payments while laying the groundwork for future innovation.”
Crossing Over to the New Card Payment Technology
Contactless payments are powered by near field communication (NFC) where transactions take place over radio frequency identification (RFID). The radio frequency allows a card or smartphone to communicate with a payment reader at a close range of ten centimetres or less.
Contactless payments are gaining popularity as more people begin to prioritise security and convenience. That is why MasterCard has introduced this program to meet the demand and to keep up with changing times.
According to its roadmap, “all new acceptance terminals in the Middle East, Africa, Europe, Latin America and Asia Pacific will have EMV chip and contactless enabled after October 2018. After April 2019, all new cards issued in the Middle East, Africa, Europe, Latin America and Asia Pacific will have EMV chip and contactless technology.”
By April 2023, all merchant terminals in Africa, Europe, the Middle East, and Latin America will be enabled with EMV chip card technology and tap and go standard.
Besides contactless card payments, there are contactless mobile payment apps such as Apple Pay, Android Pay, and Samsung Pay which are used with NFC-enabled devices.