MasterCard Inc. posted a 31 pct profit increase for the second quarter on Tuesday. That came a day afterward its fund fell 3.6 percent on live internet tv news that a group of telecommunication companies is working with Discover fiscal Corp. and Barclays PLC to develop a contactless payments network for distress speech sounds.
Ajay Banga, president and CEO of MasterCard, pointed out the Purchase, N.Y., company has its own ventures in diversified payments. But the topic was raised as a potential concern during the company’s conference call to discuss its second-quarter results.
QUESTION: Can you talk or so what you’re doing here, why possibly we should feel less concerned that you’re not going to be successful in the fluid opportunity?
RESPONSE: We’ve got close to 20 airplane pilot and commercial rollouts close to the Earth as we speak. In the U.K., Barclay’s and Orange and MasterCard are the ones working on a equivalent contactless mobile payments, Nfc-based technology to pay for goods and helps at retailers. That is the Pay Pass final that is used.
In June in the U.S., Citi announced the launch of MasterCard Pay Pass tags for the availability of their credit cards. You can shackle that prickle on the back of your mobile device and use it at any of the Pay Pass-enabled merchants that equal.
We’ve got mobile MasterCard money-send service, which is an easy way to fare money from individual to person using the mobile phone or an Internet tv browser. We can always use it to pay for purchase. It also allows small, nontraditional merchants to accept electronic payments. We’ve got money-send apps for the iPhone and Blackberry.
While the commercial enterprise mannequin for mobile payments has yet to be proved in a tangible way across the world, I have no doubt that it will get proven in some form through these various experiments and trials.
I also weigh that ultimately the phone partners, the mobile carriers, the handsets manufacturers, banks, concourse like us, what we need is an open payment system. What you do not need is a payment system that is built off one brand. Even our trials (with contactless payments in transit systems in New York), right now it’s a trial using us. Eventually we actually postulate, in a abruptly period of time, that if it works out, to become a brand-agnostic trial where we may have the advantage of processing more of the transactions, because our technology approves those transactions at the turnstyle faster.