In an attempt to ramp up mobile commerce (mCommerce),
) unveiled the Mobile MasterCard PayPass User Interface Software
Development Kits (SDKs). This new SDK provides a complete next
generation digital range of authorization and submission
The SDK assists the new applications offered by the issuers,
mobile networks operators and third party software developers on
the latest smartphones. Hence, the customers can directly access
MasterCard's PayPass Tap-and-Go contactless payments easily and
quickly through their latest smartphones with operating system
Accordingly, Mobile MasterCard PayPass User Interface SDKs'
digital operating system will enable the company to better reach
out to its merchants, third-party processors, gateways and
point-of-sale manufacturers across the globe. Through this
best-in-class tool, MasterCard will be able to boost its operating
competence by significantly reducing development times and
enhancing its certification efficiencies for its direct
Moreover, the new technology complements well with mobile
payment solution that will function onthe near field communication
(NFC), which is equipped with all the latest smartphones. So far,
more than 70 models of latest smartphones are found to be attuned
with MasterCard's Mobile PayPass.
Further, the combined market for payment from NFC-equipped
mobile phones is expected to reach from the current levels to more
than $75 billion globally by 2013, according to Juniper Research.
This paves ample scope for MasterCard to develop its
mCommercebusiness across the emerging nations that still lay
We believe that the ease of access and the less time consuming
nature of mobile banking would make this service very popular among
mobile subscribers. There lies ample scope of development in this
field in the future.
Hence, through the rapidly growing e-commerce and m-commerce
technologies, card giants such as MasterCard,
American Express Co.
) are consistently establishing an alternative to the traditional
banking model. Meanwhile, American Express was the first payment
network in the industry to commence Payment Software Development
Kits (SDKs) in December last year.
The new technologies are also aiding the company to channelize
its resources in order to adapt to the changing market dynamics and
better penetrate the global markets. Overall, these efforts will
not only shower sufficient organic growth opportunitie,s but it
should also become a part of MasterCard's long-term growth.
Furthermore, this will enhance MasterCard's operating and
competitive leverage in the upcoming quarters.
MasterCard carries a Zacks Rank #3, which implies a near-term
Hold rating, while our long-term recommendation remains
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