Mastercard and Verizon announced a new partnership on Tuesday that will focus on 5G contactless payments for consumers as well as small and medium-sized businesses.
They hope to have some innovations from the partnership by 2023.
The collaboration is intended to enable companies to use new payment technologies to turn smartphones into cash registers, turn wearables like watches into payment devices, and enable contactless retail similar to Amazon Go stores.
“A large retailer can do this easily. A small company, how are they supposed to do it? This is exactly what will bring; 5G enables us to offer the full experience,” said Michael Miebach, CEO of Mastercard, in advance of the announcement CNBC. “For example, I choose an item in a store, but it’s actually not the color that I like. So I send him home and he gets paid when he arrives, that’s all come together and we with 5G will make that happen. “
“5G will enable small and medium-sized businesses to process transactions faster and focus on what they are really delivering to customers,” Hans Vestberg, CEO of Verizon, told CNBC. “You can use 5G to create smoother transactions with your customers and focus on your business. We see that, of course, in contactless shops and from Covid. I think we see a lot less contact, because it is part of our society today. “.”
The Mastercard-Verizon partnership aims to further digitize and disrupt global consumer spending at retailers and other merchants, which the payments giant estimates at around $ 50 trillion annually. Teams from Mastercard and Verizon will be embedded in Mastercard’s New York City Tech Hub to work on additional applications for the 5G alliance.
The use of Internet of Things (IoT) and Mobile Edge Computing (MEC) in retail are two of the additional applications that are being explored by the teams at Mastercard’s Tech Hub. MEC enables cloud computing and other online functions at the boundaries of an Internet network.
“We bring you as a consumer closer to computing and storing data. This means that you get a service faster, it is safer because it is closer to you. Some data must be very close, some data can be very far away.” said Vestberg. “It can be in any industry, but it can be very useful in the financial industry because transactions need to be very secure.”
Miebach believes that small and medium-sized businesses will be the biggest growth area for 5G contactless payments, and the increased computing power has the potential to grow their business.
“As a small business owner, you have to assert yourself more digitally than ever. Maybe you were inpatient before, ”says Miebach. “Say you’re in a restaurant, you’ve tried roadside pickup, and now you want to do business both ways. It’s a better experience, but at the same time it will bring more sales for the dealer, more sales for an issuer Bank that issues a credit card as well as for us. “
“There is also more reach with new payment types,” he added. “Ultimately, as I see it from our businesses, we are building a long-term market that we can grow into.”