We recently covered MasterCard’s initiative to make its payment infrastructure available to developers for mobile payments and other commerce innovation, and the company has just announced participation with two other companies that aim to bring its “PayPass” contactless payment system to mobile devices.
A company called INSIDE Contactless has developed an NFC-based solution that will embed MasterCard’s PayPass payment system into stickers that can then be attached to mobile devices to turn them into NFC credit cards. The company behind the actual stickers is a startup named CPI Card Group.
The result is the same ease-of-use and flexibility that comes with PayPass already enabled on debit and credit cards, and therein lies the true benefit. Combining mobile payments, NFC and mobile devices together with the already wide-availability of MasterCard’s PayPass makes for a killer solution that will undoubtedly see more traction than other solutions that are building something from scratch.
On another front, it makes a lot more sense to put the NFC technology inside a sticker that can enable any device on the market, as opposed to waiting for OEMs to embed the technology in new devices. The process of building out NFC-enabled devices has been slower than it should have been, and it seems to me that this collaboration is taking the right steps from the beginning. It will definitely be interesting to see where this goes.