Amazon not only sold $2.5 billion worth of goods, it introduced Prime members to new services. How should rivals compete in 2017?
Consumers shopping the marketplace can now check out with MasterPass.
Online marketplace Rakuten.com Shopping announced this week it has added a digital wallet service called MasterPass to the handful of alternative payment options offered. MasterPass, a service owned by MasterCard Worldwide, launched in late February and replaces MasterCard’s PayPass Wallet Services, which itself launched about a year ago.
Rakuten.com Shopping shoppers can also use V.me by Visa, Google Checkout and PayPal to check out on the site without having to directly provide their payment card data to the marketplace. Rakuten.com Shopping says offering MasterPass allows consumers a flexible way to pay on the web or a mobile device.
MasterPass, like most digital wallets, stores consumers’ payment card and shipping data. When a consumer goes to check out, he selects MasterPass as his payment method, enters his user name and password, and then MasterPass communicates the relevant shipping information to the merchant and puts through the transaction.
For consumers shopping on mobile devices, using a digital wallet means a lot less typing on a small screen. Two-thirds of mobile shoppers use an alternative payment service when completing a transaction on their devices, according to a 2012 study by ShopVisible, an e-commerce and m-commerce platform provider.
Research released last month by web measurement and research firm comScore Inc. found that 13% of consumers were aware of MasterCard’s PayPass Wallet, the predecessor to MasterPass, versus 72% that were aware of PayPal. PayPal is owned by eBay Inc.