MasterCard, the No.2 payments processor, announced it will offer its own digital wallet services to consumers. MasterCard's PayPass Wallet Services is a new global offering that allows customers to make faster and easier purchases in stores and online, through a single click or tap.

"We think of MasterCard's mission as using technology to make payments safer, simpler, smarter, and this is just one of the ways we're progressing against that mission," MasterCard's Chief Emerging Payments Officer Ed McLaughlin told Mashable. "We realize that when it comes to payments, no single wallet will rule them all. PayPass Wallet Services simplifies the shopping experience while providing flexibility and choice to merchants, banks and consumers."

"Our strategy isn't to go with a single wallet," said Ed Olebe, senior VP of Mastercard's e-commerce product development. "Our strategy is a network of wallets that interconnect."

Three Components

PayPass Wallet Services consists of three components: PayPass Acceptance Network, PayPass Wallet and PayPass API. Together, these three components are designed to streamline the consumer's shopping experience and make things, easier, faster and more convenient.

The PayPass Acceptance Network covers both online and contactless payments, allowing merchants to accept electronic payments across multiple channels. Consumers can make NFC (near field communication) payments in-store simply by tapping their NFC-enabled device.

Furthermore, a new PayPass online element will allow users to check out simply by pushing a PayPass button, which will automatically provide their shipping and payment information to the merchant. This way, the customer will not have to fill all that information for each and every payment.

Through PayPass Wallet, banks, partners and merchants can white label their own wallets. Meanwhile, consumers have the benefit of storing payment and shipping information in a single secure place, whether they use American Express, Visa, Discover, or other brand credit, debit or prepaid cards.

Lastly, through the PayPass API, partners can connect their own wallets into the PayPass network, and they can also use MasterCard's capabilities such as check-out, fraud detection, and authentication services. This means their customers will be able to make purchases wherever PayPass is accepted.

Rollout, Availability & Partners

MasterCard will make PayPass Wallet Services available to customers in the third quarter of this year. The initial rollout will cover the United States, Canada, the United Kingdom and Australia, with other countries to be included later.

MasterCard's first partners for this project include American Airlines and Barnes & Noble. Other partners include JB Hi-Fi, Newegg, MLB Advanced Media, Jagex, Runningshoes.com, Wine Enthusiast Companies, and TigerDirect.com. A number of technology partners are also backing the project, and MasterCard is also collaborating with financial institutions such as Citibank, Fifth Third Bank, and National Bank of Canada. American Airlines will integrate the PayPass Wallet into its mobile application, while Barnes & Noble will integrate the PayPass online checkout button on its Web site.

"Consumers are at a pivotal point now where smartphone adoption has exploded and well over 50 percent of Americans own one," said Marc Perish, Barnes & Noble vice president of retention and loyalty marketing, as cited by Mashable. "The technology that will allow customers to make mobile payments at the point of sale has already begun to make a difference, and Barnes & Noble is proud to be a leading retail in this technology shift."

(reported by Alexandra Burlacu, edited by Dave Clark)