With the launch of the New Payments Platform only months away, Mastercard is planning to roll out a number of different services linked to the payments infrastructure.
Matt Barr, Mastercard senior vice president of core products, digital and new payment flows, has just returned to Australia after working in the United States for the past three years. Speaking to AB+F on the impact of the NPP on payments, Barr said the new framework would deliver benefits in an era of high-speed transactions and changing consumer expectations.
“The impact of the NPP will be similar to the impact digital payments had on the consumer. If it is not real time, it is broken. Consumer expectations around fast payments have now increased enormously,” Barr said. “We are really excited about the NPP and what it will bring to market."
While the benefits will be obvious - using the NPP to send or receive payments real time, on a 24 hour, seven-day basis, every day of the year - the NPP platform will also be positioned to allow users to create new products or services known as an “overlay service”.
Mastercard is looking to roll out products in two areas of expertise that will include information management and payment services.
Payment information management will allow for better reporting around transactions across institutions that use fast payment infrastructure.
Mastercard's payment services will enable consumers using banking applications to power up a mobile payment service that it says will allow faster payments to be made to a merchant on their smart phones.
The global payments provider has also just finalised the acquisition of the United Kingdom payments technology business Vocalink, which was announced back in July 2016.
Barr described this business as being responsible for faster payments in the UK and the deal will position Mastercard to expand from card-based payments to electronic-based payments.
“For a long time we have been known as a debit and credit payment business. The acquisition of Vocalink complements our goal of becoming a payments technology business,” Barr said.
Mastercard also recently announced that it would provide its contactless payments to Fitbit’s first smartwatch – Fitbit Ionic. This will allow people to make payments on their smart watch. The payments functionality is available in the United States but Barr said the initiative would be expanded to other markets.
“Any smart device can now become an e-commerce device. It’s an exciting moment for us. Expect more announcements to be made around payments and wearable technology.”