MasterCard and Peppercoin have agreed to work towards an alliance to accelerate card usage for small payments at the physical point of sale and online.
Using their combined capabilities the collaborators will offer merchants cost effectiveness through scalability. This will be achieved by using Peppercoin’s technology to aggregate merchants’ small card payments on the MasterCard network.
Furthermore, 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.
According to Peppercoin, consumers are demonstrating a clear and growing preference to use their credit and debit cards for purchases of all sizes. For example, each year consumers in the US make more than 350 billion transactions of less than $5, representing $1.32 trillion in total spending.
The micro and small payments market represents a significant growth opportunity for card-enabled transactions, said Art Kranzley, global product group executive at MasterCard International.
