Mastercard has launched a location based security service for consumers making mobile payments while abroad.
The payments company is testing the opt-in scheme with cloud company Syniverse. Under the scheme, consumers can only make mobile and card payments while abroad if their device is set to the specific geolocation that they are in.
The companies said the service would increase security and remove the frustration of having a payment declined.
Research from the companies said as much as 80 percent of legitimate transactions made overseas are declined because of fears about fraudulent activity.
The service was revealed as a discussion at Mobile World Congress in Barcelona yesterday. Mastercard discussed how the service could ultimately help retailers to launch targeted offers to a customer when they are nearby a store.
Last week, Weve, the UK joint venture between EE, O2 and Vodafone, launched its own location based offers pilot, which uses iBeacon technology to send offers to customers.
Hany Fam, President Global Strategic Alliances, MasterCard: “This collaboration of two global technology leaders opens up a whole new range of possibilities for end users, ensuring a seamless payment and mobile experience.