Will MasterCard’s Plastic-Free Payments Take Off?

MasterCard (NYSE:MA) has unveiled its latest creation to address the increasingly popular system of mobile “wallets” that allow people to make purchases — both online and in store — through their mobile device.

Named MasterPass, the program would allow consumers to store their credit and debit card information on their mobile device, whether a smartphone or tablet. Using NFC, or near-field communication, technology, customers can tap their device against a corresponding terminal in the business to make payments. The system will eliminate the need to have a physical plastic card present.

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The program would also build on the one-click checkout option that has been available on PayPass, MasterCard’s existing electronic wallet program that works similar to Amazon.com’s (NASDAQ:AMZN) 1-Click ordering button. Customers can make purchases almost instantaneously on the retailer’s website, since their credit card information is already stored and is charged automatically, and purchases are shipped to a default address. With MasterPass, participating merchants can now embed the same functionality into their customized store apps, enabling customers to check out even quicker via their smartphones and tablets, ABC reported.