MasterCard Pushes for Industry Standardization

MasterCard is making yet another big move in the financial technology scene with a push for industry standardization.

Online redemptions for customer loyalty programs already exist to an extent within the existing retailer payment system. MasterCard hopes to bring this system to an industry standard for point-of-sale checkouts on mobile apps. The push for an industry standard was revealed at the Cartes Secure Connexions event in Paris this week, with backing from partners Ingenico Group, Spire Payments, PAX and others.

MasterCard notes that loyalty programs already exist to a certain extent but that some businesses struggle to offer these services through mobile app payments. The credit card company wants to establish one standard for mobile payment loyalty rewards through its app, bringing seamless functionality to vendors.

Retailers hoping to retain or attract new customers will have access to a suite of tools through MasterCard’s app that can be tailored to the retailer’s specific needs, while also meeting one industry standard across the board.

MasterCard’s senior vice president of Mobile and Emerging Payments James Anderson discussed the benefits of MasterCard’s new middleware standards in a statement last week. “One standard will make it easier and less costly for merchants, wallet issuers, terminal providers and others in the industry to implement these programs and focus on other elements of the customer experience,” the statement said.

MasterCard’s push for industry standardization isn’t a new trend in the emerging financial technology sector. As larger, more established firms help lead smaller fintech startups, many are pushing for standardization across the board to level the playing field.