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Mastercard has launched a mobile virtual card app targeting financial institutions with HSBC and Westpac the first clients for the new offering.

The firm aims to offer these companies greater choice when delivering secure contactless payments solutions, having identified the growing importance of mobile technology in global payments.

Mastercard’s virtual card and tokenization platforms, enhanced data and spend controls underpin the overall offering. The firm intends for the virtual cards to be used by various organisations regardless of size, including healthcare, insurance, fleet, higher education and corporate travel enterprises. 

Chad Wallace, Global Head of Commercial Solutions, Mastercard, said: “Businesses worldwide are seeking fast and secure payment experiences, where payments can be made with just a click or tap, and finance teams can experience automatic reconciliation.

“With today’s launch, we’re providing innovative tech that digitises business and travel expenses, while also empowering businesses with more control of and visibility into their finances.” 

Mastercard has identified five benefits to its virtual card. The firm has used biometric authentication using a PIN to view card details, offering more enhanced security. 

The company has been making extensive use of biometric technology, as well as Artificial Intelligence (AI), to further develop its products, as explained by Senior Vice President of Security Solutions and Processing, Tulsi Narayan, in an interview with Payment Expert earlier this month.

In addition to security, the app features spend controls using Mastercard’s transaction-level controls, whilst flexible integrations have been enabled through the user interface or flexible API-based integrations.

Lastly, Mastercard states that the cards offer a ‘holistic and seamless payment experience’ by enabling users to check card balance statuses and view pending and completed transactions, whilst the use of real-time and enhanced data offers greater insights into spending.

Representing one of the two firms rolling out the virtual cards first, HSBC Australia’s Head of Global payments, John Scott, said: “We’re pleased to partner with Mastercard to bring mobile wallet virtual cards to our Australian corporate clients, providing them with a smarter, safer, and faster way to pay.

“Mobile wallet usage is growing, with the Asia-Pacific region accounting for over half of the digital payment transactions globally. As contactless payments continue to surge, it’s important that corporate clients have access to best-in-class payment solutions to keep their business secure and take advantage of the increased efficiency offered by the latest technologies. 

“HSBC has a history of delivering innovative digital solutions to our corporate clients, and we’re proud to add to that legacy with the launch of mobile wallet virtual cards in Australia. We plan to launch in other markets later this year.”