The multi-year deal will combine MasterCard’s expertise in payment processing and commerce with Intel’s strength in chip-based security. The idea is to make checkout simpler and safer for online merchants and consumers using Ultrabooks (thin laptops like the Macbook Air) and future PCs.
The two companies will work on emerging payment technologies such as MasterCard’s PayPass and Intel’s Identity Protection Technology. The latter uses two-factor authentication and hardware-based display protection and security against malware. Consumers will be able to pay for online purchases in the future with a simple tap of a PayPass-enabled card, tag, or smartphone on an Ultrabook device.
PayPass can be used in plastic cards, mobile phones and other devices. Instead of swiping a credit card, you can simply tap on another device that contains the same technology. It is currently in use with Google’s mobile wallet service for Android mobile devices.
Ed McLaughlin, chief emerging payments officer at MasterCard, said the collaboration will focus on a simple click or tap from the consumer point of view. Online sales hit $176.2 billion last year in the U.S. and are expected to grow at double-digit rates for the next five years, according to market researcher Forrester Research. Intel’s George Thangdurai, general manger of PC Client Services at Intel, said online commerce is a key focus area for Intel. MasterCard is competing with rivals such as Visa, American Express, Discover Financial Services, and PayPal.