According to an announcement from Forbes today, Master Card is in the testing phase of creating a system that only allows charges to process if your credit card is near you, or essentially near your mobile phone.
Syniverse, a global telecommunications company, will be partnering with Master Card to help facilitate approval, or denials of charges based on a mobile phone’s geolocation in relation to the credit transaction.
Not only will this help mitigate fraudulent charges that occur from credit theft, but this will also help to ensure that travelers have a “seamless transaction” while making purchases abroad.
According to pcworld.com, the companies plan to leverage this service in other ways. In addition to using this service to protect against fraud, subscribers will receive targeted offers based on nearby retail shops.
As it is typical that many concerns and questions come to mind as products become more involved into our personal data, the platform will be an opt-in service.
While one intention is to resolve discrepancies in fraudulent charges while abroad, several wonder wether the outrageous mobile roaming fees will really outweigh the risks, or benefits of the platform. To help offset roaming fees, Forbes says that, “the alliance will also offer mobile users a choice of prepaid data packages … when they arrive to their destination.”