February 24, 2014
MasterCard first introduced PayPass in September, 2003. The service was introduced after conducting a 9 month trial which involved over 16,000 card holders and 60 retail locations. In 2011, MasterCard reported 92 Mn PayPass cards and devices issued worldwide with over 310,000 merchant acceptance points.
A PayPass Wallet Service known as MasterPass was launched in May, 2012. The wallet service was launched to close the gap between online and offline shopping. MasterCard named it’s PayPass Wallet Service as MasterPass in early 2013.
Now, MasterCard has revealed plans to support in-app payments via MasterPass. The wallet lets users store all their payment, store card, loyalty, shipping and billing address details in one place and pay for goods and services online from retailers that have signed up to support the wallet.
On 3rd December 2013, C-SAM (pioneer in secure mobile transactions technology) announced the launch of its Digital Wallet Solution which is compatible with MasterPass by MasterCard. C-SAM developed the solution for processors and financial institutions looking to retain control over the user experience, data and technology.
On 24th February 2014, MasterCard announced that it is acquiring C-SAM in a bid to strengthen its position in the mobile payments space. At Mobile World Congress, MasterCard today announced it has entered into an agreement to acquire C-SAM, Inc. ('C-SAM') a leading provider of mobile wallet and on-device software and services. In acquiring C-SAM, MasterCard will speed the development and deployment of mobile wallets and payment solutions globally, including the rollout of its MasterPass(TM) digital service.
C-SAM was co-founded in 1998 by Sam Pitroda (Chairman) and Mehul Desai (Vice Chairman) with Felix Marx operating as its CEO. The company has received a total funding of $2 Mn. C-SAM offers a range of mobile based apps for retailers, financial institutions and mobile network operators that make use of QR Code, NFC, online, coupons, remote and other payment enabling technologies.
'Consumers today are living digital lifestyles, shopping in new ways using a range of new products and devices,' said Ed McLaughlin, Chief Emerging Payments Officer at MasterCard. 'Bringing C-SAM's mobile expertise into MasterCard will help us launch a wider range of mobile and virtual solutions better and faster -- bringing convenience and choice to consumers, while adding value to our expanding partnerships with telcos, governments and merchants.'
C-SAM strength is in the on-device application and back-end infrastructure. This will aid development efforts for Mastercard to enable consumers to use MasterPass both in-store and online across multiple communications technologies, including NFC, QR/barcodes and remote checkout.