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  • Payment
  • Europe

MasterCard also committed to empowering payments

The web giant is constantly making announcements and confirming its all-out positioning in the payment market and even in related services. Recently, it also confirmed its interest in empowering payments, thanks to a partnership. MasterCard has joined forces with Pairpoint, a company specializing in the connected object market, to get involved in the autonomous payment revolution.

FACTS

  • Vodafone, Sumitomo Corporation and Mastercard have announced a new partnership involving the American payment giant and Pairpoint, the Internet of Things business of Vodafone and Sumitomo Corporation.
  • Their joint work should lead to the deployment of a new payment service enabling payment authorization by machines, within automated processes. Pairpoint's platform will be linked to Mastercard Gateway, the global platform that enables companies to accept payments securely.
  • Fleet management, freight, shipping and logistics services are particularly targeted by the new system. In particular, the new service should enable fleet operators' vehicles to make direct payments (authorized at recharging or fuel stations, as well as at toll booths), or freight companies to authorize pre-approved payments along a route, for example.
  • Technically, connected devices, and in this case vehicles, are equipped with SIM cards to identify them and enable them to transmit information and pre-authorized payment acceptances to payment systems.
  • MasterCard and Pairpoint expect to launch this new integrated payment technology in the UK initially, before a wider roll-out across Europe.

CHALLENGES

  • Enabling objects to pay: MasterCard and Pairpoint aim to enable objects, including vehicles, to carry out transactions. MasterCard and Pairpoint will leverage Vodafone's global IoT platform with over 187 million connections, and Sumitomo's industrial presence in 66 countries and regions.
  • Capitalizing on a vast market: According to Statista figures from May 2024, while the global market for connected objects or the Internet of Things (IoT) represented around US$182 billion in 2020, it is expected to reach over US$621 billion in 2030, and thus see its sales triple in ten years. This dynamic growth has attracted a great deal of interest, including from MasterCard.

MARKET PERSPECTIVE

  • The dematerialization and internationalization of exchanges, as well as the revolution underway around the deployment of Artificial Intelligence and the Internet of Things, all represent major upheavals, as rapid as they are major, for the economy in general and payments in particular.
  • As a major player in the payment industry, MasterCard is keeping pace with these developments, and is multiplying its initiatives to adapt its offering and maintain its benchmark status. The payment giant is multiplying its offerings to manage subscriptions, get involved in the crypto market, participate in the Click to Pay boom and facilitate remote authentication processes.
  • These efforts are ultimately driving the group to diversify and multiply its payment-related offerings. More recently, MasterCard has also embarked on a test phase to improve identity verification for payments in Europe.