MasterCard wants to make it easier to use your Apple products to send and receive money, and the company has just released a MoneySend app for the iPhone and iPad.
The app enables users to send and receive requests for money via credit cards, debit payments or via through a prepaid account from Bancorp Bank. In general, the company is aiming this at small-time transactions like paying a gardener, baby sitter, or bike messenger. But you’ll also be able to use this for business purposes, particularly if you run a small shop.
“With MoneySend, users avoid the hassle of making payments with cash, check or money orders and collecting funds is as simple as a text message with the ‘Request Funds’ feature of the app,” said Joshua Peirez, chief innovation officer of MasterCard, in a prepared statement.
The move comes as the mobile payment space is growing increasingly crowded. PayPal is spreading its payment platform to multiple smartphone operating systems and it even lets third-party developers integrate its service in apps. One of Twitter’s founders has brought out the Square system, which plugs into the phone’s headphone jack and lets small merchants accept credit card payments securely and quickly.
There are still many hurdles to overcome before your phone can become your wallet though. The biggest issue is probably the lack of infrastructure at major retailers, as this will cost billions in investment. There’s also security perceptions to overcome, as I don’t think the mainstream is completely comfortable with this idea yet.
Of course, all it takes is one big player to push mobile payments and the ball will get rolling. In fact, there’s a slight chance we may see some strong mobile payment features in the next iPhone. The company has patented a way to use your iPhone to pay someone with a credit card, debit card, directly from your bank account via a transfer, or via iTunes. This would require the next device to have near-field communication technology and it could be a game changer in the mobile payment space.
[Via MasterCard, photo]