MasterCard Supports Micro and Small Payments Via Aggregation Model

MasterCard provides merchants with the flexibility to decide when to submit a small transaction to MasterCard. MasterCard believes that by aggregating smaller payments, a merchant can process micropayment transactions cost-effectively. This allows merchants to reduce their transaction cost, while retaining the ability to offer their customers the convenience and protections of a trusted payment brand for purchases of any size. Merchants can utilize small payments technology, such as that from Peppercoin, to develop new revenue streams, implement loyalty programs more easily, and meet consumer demand while selling low-priced goods profitably.

"The micro and small payments market represents a significant growth opportunity for card-enabled transactions," said Art Kranzley, global product group executive, MasterCard International.

"MasterCard recognizes the need for a convenient, consistent and safe payment experience in the online, mobile and physical environments and we provide flexible solutions to financial institutions and merchants to meet these needs."

"Peppercoin is an ideal choice as a service provider. The company has been working closely with merchants and financial institutions to provide an innovative technology that works within the existing payments infrastructure," added Kranzley.

Consumers are demonstrating a clear and growing preference to use their credit and debit cards for purchases of all sizes. Each year, consumers in the United States make more than 350 billion transactions of less than $5, representing $1.32 trillion in total spending.

Through the anticipated alliance, merchants who enroll in the Peppercoin micro and small payments program will receive a reduction in Peppercoin fees for their MasterCard transactions.

"This is a great milestone for Peppercoin. MasterCard has a long history of payments innovation, such as its MasterCard PayPass contactless payment program. We look forward to working with them in the coming year to bring additional innovations to the micro and small payments market," said Mark Friedman, president and CEO of Peppercoin.

"Merchants will have extra confidence in beginning small payments initiatives, knowing that MasterCard supports the use of Peppercoin technology by merchants to provide flexible purchasing options for consumers."