Mastercard partners with Fitbit for contactless wearable payments

Fitbit and Mastercard have partnered to give fitness enthusiasts the ability to make contactless payments with their wearable.

Owners of Fitbit’s new smartwatch model Ionic, will be able to add eligible cards and make payments in Australia later this year.

“Consumers today are expecting technology to help them accomplish life’s daily tasks with as few steps or clicks as possible,” said Kiki Del Valle, senior vice president, commerce for every device, Mastercard.

“By adding payment capabilities to a Fitbit device, Mastercard cardholders who are already on-the-go can easily buy what they need without having to bring their wallet with them.”

According to a PwC report last year, more than half of Australians own at least one wearable device, the majority of those being fitness trackers. An IDC study published at around the same time put that figure closer to 21 per cent, one of the highest in the world.

Powering the transactions is Mastercard’s token service, which generates a unique alternate number or for the 16-digit card number found on the front or back of a payment card.

When making a purchase, the user’s digital wallet sends the token to the merchant, who sends it to the Mastercard network for authorisation. Mastercard then sends the actual card number to the card issuer. Once the issuer receives the request, it processes and authorises the payment in the usual way.

Tokens are a safer way to process payments without actual bank or credit details being exposed, Mastercard said, and don’t work if trying to perform a transaction on a different device.

To read more, please click on the link below…

Source: Mastercard partners with Fitbit for contactless wearable payments – CIO