How does MasterPass work?

blog-masterpass - xsolla

“The future of digital payments is here.” Nearly two years after MasterCard announced their plans on releasing an innovative payment solution called MasterPass, it has finally become available from late 2014 starting work in Russia. Xsolla covers what MasterPass brings to the table as far as features and services in today’s blog post.

MasterPass in a Nutshell

MasterPass  is not quite the classic wallet in the conventional sense. This is not comparable to PayPal and Webmoney but rather, the system can be characterized as a service for the storage of various payment cards (both virtual and physical). In addition to being storing the payment information directly into MasterPass, the delivery address is also recorded which is particularly interesting and convenient when you purchase physical goods.

The functionalities of the system are quite self-explanatory. For example, if you have a credit card from MasterCard, you can easily create a MasterPass into your system. You receive a username and password and also the ability to link your wallet to an email and/or cell phone number. That’s all there is to it and you receive your brand new wallet card. You can also add more than one MasterPass cards so that you are not restricted by payment information such as: numbers, codes, and addresses.

After your wallet is filled, you can go to the store and, instead of trying to remember all of your data to input, you can simply type your username and password to make a secure payment. Easy!

How does MasterPass work through Xsolla?

In Xsolla‘s case, MasterPass does not work like a typical payment system. After you login with your secure username and password, we verify with MasterPass and then, the data is sent back to the client’s credit card for approved payment. The same principle is used in Visa Checkout.

After receiving the data, Xsolla uses it’s own card solutions and authorizes payment once verified. MasterPass’s username and password information is not payment data in actuality. When working with this service, you still need to use a payment system to drive data cards and carry full authorization to the issuer. Security is, therefore, significantly higher because MasterPass holds two authorization parameters: one on MasterPass itself and the other with the bank.

Subtleties of Online Payment Implementation Through MasterPass

There are a few differences in making payments through MasterPass. In addition to username and password, the user must also select their region which then prompts them to find the payment wallet of their choice in the list of options. It turns out that the customer has to perform a few additional steps to proceed. The payment mechanism is not trivial however, and it is difficult to say what kind of results will be had as well as the impact on the conversion. This is a new trend which only began to develop through the efforts of MasterCard and Visa. Only after some time will we be able to see it’s true impact on the market.


This type of system is certainly interesting as the user has no need to carry anything with them and no data card to store information in. Even the client’s address is stored in the system and they can add multiple places if need be. Just enter your username and password when prompted at the “cashier” and you’re ready to go.

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