Many local payment schemes are looking to expand beyond money transfers, QR payments, and bill payments. This article explores how to implement "Pay by Account" solutions, enabling mobile NFC payments directly from a user's bank account.
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What is the Pay by Account Solution?
Pay by Account, also known as mobile NFC payments directly from your bank account, is a technology that revolutionizes contactless payments. It allows you to pay with your smartphone using your bank account information, eliminating the need for physical debit or credit cards.
This secure solution is powered by Mastercard Cloud-Based Payments (MCBP), which digitizes your bank account number for seamless transactions. Verestro's innovative fintech solution facilitates this process by providing the functionalities for account digitization, user data management, and the payment infrastructure needed for a smooth user experience with Pay by Account.
Why to Consider Pay by Account with NFC?
Integrating with global networks like Mastercard and VISA allows users of local schemes (like BLIK in Poland or PIX in Brazil) to make mobile payments globally. This is a significant step in product development for many local schemes.
Implementing Pay by Account with NFC
The solution leverages virtual cards and local settlement mechanisms. Here's a breakdown of essential implementation steps:
Virtual Payment Tokens: Each user receives a hidden virtual payment token for contactless, eCommerce, and in-app payments.
Tokenization on Mobile Phone: The token is tokenized on the user's mobile phone (typically using an Issuer Wallet SDK) before being used for payments.
Domestic Transactions: For domestic transactions at acquirers and terminals integrated with the local scheme, authorization and clearing are routed through the local scheme.
International Transactions: For international transactions anywhere in the world, authorization and clearing occur via the standard Mastercard or VISA settlement network.
Key Considerations for Implementation
Virtual Card Issuing: You'll need a virtual card issuer or processor with minimal per-card fees.
Network Support: Collaboration with Mastercard or VISA is necessary to agree on the processing mechanism.
Technical Infrastructure: Certified SDKs and backend components for contactless payments are required.
Similar schemes have already been implemented by Verestro globally. We're happy to discuss this setup in more detail and help you navigate the process. Contact us today!
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