MasterCard is testing new ways to make online transactions more secure with its PayPass application and a mobile phone, including using QR codes to secure the transactions.
The card company is cooperating with Dutch bank ING Group on a trial in the Netherlands that will test two ways of securing online transactions. They both use a secure element on the mobile device and MasterCard's PayPass application to offer the same level of security as when paying in a store with a chip-equipped card, according to joint a statement.
In the first scenario, the shopping is done using the phone and the user enters a PIN to authenticate the transaction. The transactions are secured by sending an EMV-compliant cryptogram from the device directly to the merchant's payment gateway for processing.
EMV (Europay, MasterCard and Visa) is a standard for credit and debit payment cards based on chip card technology.
In the second scenario, the shopping is done on a PC or tablet, but the user can then pay on a phone using a secure QR code that connects the PayPass application with the online shopping cart.
In both cases, coupons and vouchers can be used as the consumer shops, as well.
This year has seen MasterCard stepping up its mobile push.
In May, MasterCard announced PayPass Wallet Services, which is aimed at banks and merchants that want to offer mobile payments. It includes the PayPass wallet and APIs for partners to launch wallets under their own brand and integration with the PayPass Acceptance Network.
The company is also working with NTT Docomo to allow the Japanese operator's subscribers to make mobile payments when travelling abroad next year.
The Dutch trial has already begun and will run through the first quarter of 2013. A total of 160 users are taking part and they are using Samsung's Galaxy S III, according to ING.
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