MasterCard Acquires M-Payments Partner C-SAM, Launches In-App Payments (Feb. 24, 2014)
MasterCard has entered into an agreement to acquire Chicago-based mobile payment technology provider C-SAM. Terms of the agreement, announced today at Mobile World Congress in Barcelona, were not disclosed. The acquisition, which is subject to regulatory approval, is expected to close by the end of March.
“Bringing C-SAM’s mobile expertise into MasterCard will help us launch a wider range of mobile and virtual solutions better and faster,” said Ed McLaughlin, MasterCard chief emerging payments officer, “bringing convenience and choice to consumers, while adding value to our expanding partnerships with telcos, governments and merchants.”
MasterCard and C-SAM launched a joint initiative in 2012 to offer a contactless mobile wallet for Africa, Asia-Pacific and the Middle East, and a few months later MasterCard acquired a stake in C-SAM. The companies also partnered last August with mobile wallet service provider DNP to bring a white-label NFC-based mobile wallet service to Japan.
MasterCard also announced today the launch of MasterPass in-app payments, enabling consumers to make secure purchases within a mobile app and eliminating the need to store payment card information on several mobile apps. Forbes Digital Commerce, Fat Zebra, MLB Advanced Media, NoQ, Starbucks Australia and Shaw Theatres Singapore, among others, are the first app providers that will use MasterPass to power their in-app purchasing capabilities.
MasterPass in-app payments extend the current browser-based MasterPass digital service into the mobile app environment, and provide consumers with one secure direct relationship with their banks, according to the announcement. MasterPass in-app payments will be made available to developers and merchants beginning in the second quarter of this year.