Mastercard Testing Mobile Location Data to Reduce Credit Card Fraud
Published on: 25th Feb 2014
Note -- this news article is more than a year old.
Credit card company, Mastercard is testing a new service that would only allow credit card transactions for the card outside the users home country, when their mobile phone is also detected to be in the same country as the transaction.
Mastercard is running the pilot-phase for an opt-in service with Syniverse, which will provide the necessary roaming data.
The aim is to give financial institutions an additional tool that will help them make more effective decisions when approving or declining a transaction on behalf of their customers.
In addition, mobile users could also have a choice of prepaid data packages that they can purchase directly from their phones when they arrive in their destination country. Approximately 75 million mobile phone users travel outside their home country each month, yet today 70 percent of people switch their mobile data function off when they arrive, which is likely in an effort to avoid roaming charges.
Mobile network operators could --potentially -- implement targeted offers, which will be made more relevant by knowing the location of a mobile device, for example in close proximity to a retail store.
There are nearly 2 billion MasterCard cards in circulation, while Syniverse currently reaches more than 5 billion mobile devices globally via 1,000 mobile service providers.