MasterCard International has entered into an agreement with Waltham, Mass.-based Peppercoin seeking to accelerate card usage for small transactions, so-called "micropayments," at both retailers and online.
Under the plan, MasterCard said merchants will be able to aggregate smaller payments, which would reduce the cost to the merchant of processing the micropayment transaction. The card association said that merchants will then be able to 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.
According to MasterCard, each year consumers in the United States make more than 350 billion transactions of less than $5, representing $1.32 trillion in total spending.
