In the midst of the digital revolution, the way people make payments is changing and as digital channels rapidly grow, there has also been a rise in the number of data breaches in Australia, with cyber security now becoming a critical capability to protect businesses and e-commerce.
Shoppers expect every digital interaction to be intuitive and frictionless, from creating and accessing accounts through to payment and delivery. For all participants across the e-commerce value chain, the opportunity now is to deliver the best digital experiences at every step of the customer journey.
For over half a century, Mastercard has been dedicated to developing innovative products and services that transform the way consumers make payments, ensuring transactions are faster, safer and more secure.
This has empowered Mastercard to support business partners, improve the shopping experience, and encourage financial inclusion around the world, so that these solutions are accessible for everyone.
Mastercard’s role in the payment process
Contrary to popular belief, when it comes to the point of payment between shoppers and retailers, Mastercard is neither an issuer nor an acquirer. Instead, it provides the technology and network that powers those transactions.
Here’s an overview of what happens during the payment process:
- The customer purchases goods and/or services from a merchant (i.e business).
- The merchant’s point-of-sale system captures the customer’s payment information and securely sends it to the customer’s bank for processing.
- The transaction gets submitted, at which point the merchant’s bank asks Mastercard to get authorisation from the customer’s bank.
- The bank authorises the transaction and routes the payment back to the merchant through Mastercard’s secure payment gateway and deposits the payment into the merchant’s account.
During this process, Mastercard’s technology is actively monitoring the process to detect and fight fraud at every step along the way for both retailers and shoppers.
These security solutions are constantly evolving to ensure that as new risks emerge, so do new protections for its cardholders.
When it comes to making progress, innovation must be a critical part of a larger goal to make the lives of shoppers and retailers easier and safer than ever.
That’s why Mastercard offers contactless payments with contactless-enabled devices or cards. Shoppers can make everyday purchases quickly and safely with the tap of their contactless-enabled Mastercard or device, removing the hassle of looking for cash, or waiting for change at the checkout.
In many ways, this is a far safer option for both shoppers and retailers compared to alternative payment methods such as cash. Contactless payment ensures shoppers are in control of their data – cards or devices do not need to leave the shopper’s hand, reducing the risk of loss or counterfeit. Each purchase is also uniquely encrypted.
As a further benefit to retailers, contactless payments protect shoppers from double billing, even if they tap twice, reducing the headache that this can cause businesses.
Secure payment solutions
The rapid growth in e-commerce has created new challenges and risks. Cyber-attacks, online fraud and scams have caused significant losses for retailers and shoppers and threaten to erode trust in digital interactions.
Safeguarding account creation and enabling seamless and secure digital onboarding is a critical driver to prevent fraud impacting both retailers and shoppers, while also driving efficiencies for businesses.
Mastercard’s identity solutions securely and seamlessly connect people with merchants, businesses, and banks, enabling them to interact with confidence, and give retailers confidence that shoppers are who they say they are.
Powered by global identity technologies, data and insights, device intelligence, machine learning scores and biometrics, retailers can verify and authenticate more genuine shoppers and prevent fraud in real-time.
From the initial account opening and across the entire payment transaction and fraud ecosystems, Mastercard identity solutions help instil trust throughout the interaction and identify fraudulent users without added friction.
Continuous monitoring and assessment of cyber security helps retailers to protect their business, mitigate against cyber-attacks and data compromises, and preserve the strong brand value and reputation that businesses have earned. Mastercard helps businesses proactively assess and monitor the risk exposure across their organisation or from vendors, consultants and suppliers that have access to their systems and data, by identifying vulnerabilities with third parties.
For more details on how Mastercard is enhancing commerce to be safe, seamless and convenient, check out the Mastercard Digital Security Strategy & Roadmap in Australasia 2023.
Stay tuned for further developments from Mastercard as it continues to unlock exciting new solutions to make payments more secure, faster and safe.
Learn more about what Mastercard is doing every day that makes payments networks secure, fast and safe.