updated 09:12 am EST, Wed February 26, 2014
Effort would also push contextual offers from retailers to participants
MasterCard and connectivity provider Syniverse today joined forces to deliver a number of mobile and payment services designed to enhance peace of mind for mobile users when traveling abroad. The two companies are currently testing a technology for an opt-in service that will enable card transactions for users only when they have their mobile device switched on in a specific geolocation, adjacent to the transaction location.
This service aims to reduce consumers' frustrations associated with having their payment cards' numbers stolen without their knowledge, or having their own transactions unnecessarily declined when trying to make purchases in another country. Financial institutions will also have an additional tool that will help them make more effective decisions when approving or declining a transaction on behalf of their customers.
The geotracking could also enable retailers to implement targeted offers, which will be made more relevant by knowing the location of a mobile device, while in close proximity to a retail store that uses the technology. Syniverse believes that the global market for retail-boosting services based on mobile contextual location data could be worth as much as $44 billion annually.
With nearly two billion MasterCard cards in circulation, the company processes 65,000 transactions every minute. Syniverse currently reaches more than five billion mobile devices globally via 1,000 mobile service providers.