Dive Brief:

• MasterCard and Syniverse, a data systems and roaming technology company, are piloting a set of mobile-based payment services for people traveling abroad. 

• As many as 50% to 80% of credit card transactions travelers make are declined, according to MasterCard.

• The opt-in mobile technology will reduce the chances of a payment being declined while protecting consumers’ data, and could also be a conduit for special offers for travelers in their location.

Dive Insight:

This technology is an example of the power of mobile payments and advancements in mobile payment systems. If successful, the services being developed by these two companies would process payments in seconds (or less) and verify that the phone’s location is in the same place a payment is being made. That kind of speedy verification would cut down on the frustration many travelers encounter when their credit cards are declined abroad. Once fully developed, banks and phone companies would have to cooperate to make the service operational, but this is an example of payment technology that will only spur the growth of mobile-based commerce.