Remittance

In India, MasterCard to Use HomeSend for Remittance Services

In February, 2015, MasterCard established a technical centre at Pune and Vadodara. The centres together represent the company's largest tech hub outside the United States. The centre plays a pivotal role in developing innovative services and solutions across the entire value chain of payment processing for India as well as other emerging markets. MasterPass is one such solution (predominantly developed in India) which has been launched globally across 14 countries and is soon expected to come to India. The Pune facility is focused on MasterCard’s processing business while the facility in Vadodara is focused on mobile wallets. MasterCard in India is also working on a real-time money transfer app. Furthermore, the company is also focusing on regulatory aspects such as twin factor authentication in India. Last year, MasterCard acquired ElectraCard Services and C-SAM to gain entry into the Indian market.

MasterCard has an existing partnership with HomeSend, a US-based money transfer company. MasterCard is planning to use HomeSend’s network to offer remittance services in India as well. In order to protect customers, MasterCard has created an additional layer of security to the digital payment process through the MasterCard Digital Enablement System (MDES) or tokenization, a technology that is ushering a new era in digital payments. The company is now in talks with Indian banks and a telecom provider to launch remittances service in India.

Last year, MasterCard late had surveyed 500 respondents in India between ages 18 to 64. The survey was targeted at consumers who accessed the Internet at least once a week. Interestingly, 17% of the respondents said online shopping was their primary reason for going online. Amusingly, security of payment facility (86.8%), price/value of items (86.6%) and convenient payment methods (86.2%), were the top three reasons for people to shop online in India. The survey also noted that the ability to shop on the move, the availability of apps and convenience as the top 3 drivers for increased smartphone shopping in India.

Globally, MasterCard has been working with players such as Samsung and Apple to develop secure and seamless shopping experiences. MasterCard uses its digital enablement services to achieve this. MasterCard along with its partners has also been pushing solutions such as EMV and mobile payments. MasterPass which will soon be launched in India is expected to ensure that every device will be a commerce device, which will enable banks to offer secure payments for all of their customers across channels.

Kate

Kate is a staff writer at LetsTalkPayments.com., , She likes to write about mobile payments and mobile commerce.

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