Many companies are trying to one-up each other over virtual payment systems, with Paypal, Google Wallet, and everybody else trying to shove their way in.
It’s no surprise that earlier this year, MasterCard has entered this crowded arena with their new MasterPass payment system. Basically, it’s very similar to Paypal in that they allow you to register your credit cards (yes, even Visa) and use MasterPass at online stores to be able to checkout quickly without having to re-enter your credit card number and shipping address. What’s different is MasterPass is just a payment system and there is no virtual money in your account.
If you decide to sign up for this free service, remember to activate the “Mobile Verification” so that you will get a 4 digit PIN texted to your phone to log into your account. This is just one more level of protection from hackers and identity thieves.
So far, there are very few online stores that accept MasterPass, especially compared to ones that accept eBay’s Paypal payment system. If MasterCard wants to get any traction, they will have to make some big moves on this front. It took Paypal many years before they were accepted in many online stores. Of course, MasterCard does have a lot of good will with big brand names. We will have to wait and see how this plays out.