MasterCard has lifted the lid on a new digital payment system called PayPass Wallet, set to compete with a range of other payment services such as Visa's V.me.
However rather than launching a restrictive proprietary digital wallet of their own, MasterCard announced a system that would allow rival payment systems and not just MasterCard. There are three aspects of PayPass, an acceptance network, a digital PayPass Wallet and an API.
PayPass Wallet in particular will apparently be offered as a wholesale solution to enable other providers to offer a 'white label' service which will be able to process payments on a range of cards including American Express and Visa.
The PayPass service will ultimately allow customers to pay for goods online and via stores with devices such as NFC-enabled mobile phones. Users will be able to select any card they have filed for the system, MasterCard or not.
After years of not very much activity, the digital wallet market seems to be going into overdrive. Just weeks ago Visa's V.me service was announced as launching in the UK, France and Spain later this year.
MasterCard's PayPass system will be launched in the third quarter of this year.