Mastercard launches wallet tools as Apple opens NFC

Mastercard has introduced Mastercard Wallet Services for banks, fintechs, merchants and digital platforms, aiming to simplify the creation of digital wallets on iOS and Android.

The launch comes as Apple opens access to near-field communication features on the iPhone in more markets, widening the scope for rival mobile payment offerings beyond Apple Wallet's long-standing position on its devices.

The new service provides software tools and related services that enable partners to add contactless payment capabilities to their applications. It includes a Secure Element applet and software development kits for Android and iOS.

The aim is to reduce the technical burden of building wallet products across mobile operating systems. Partners can develop contactless payment functions without separate integrations for different platforms or managing EMVCo certifications themselves.

The move reflects a shift in the structure of the digital wallet market. Android has long allowed a wider range of wallet options, including products from handset makers and other payment providers, while iPhone access to contactless payment hardware remained restricted for years.

That imbalance shaped how banks and fintechs approached mobile payments. Many built different experiences for Android and iOS users, or relied on Apple's wallet on the iPhone instead of launching a single in-app payment product across both systems.

Apple's decision to grant wider NFC access in 2024 changed that. Mastercard says the shift creates an opening for banks to add wallet functions directly to their mobile banking apps on both major mobile platforms.

Mastercard Wallet Services is available globally in markets where Mastercard Digital Enablement Service tokenisation is already enabled, spanning more than 200 countries and territories.

On iOS, the contactless payment features supported by the new service are being introduced in markets where Apple has enabled NFC access, including the US, the UK, Europe, and other regions. That means the product's practical reach on Apple devices will depend on local availability.

Market shift

The announcement points to a new phase in mobile payments competition, as banks, financial technology companies and large digital platforms seek to place payment tools more directly inside their own apps. For many, the commercial appeal is keeping customer engagement within their own services rather than handing payment interactions to third-party wallet providers.

New wallets could offer rewards, discounts, points and other features designed to encourage adoption. If users respond, providers may build stronger ties with their customers and gain more insight into how they use apps for payments.

Even so, adoption of alternatives to established wallets is unlikely to be immediate. Consumers are accustomed to a limited number of payment options on smartphones, and new entrants will need to offer clear reasons to switch or add another wallet to their routines.

Developer focus

Mastercard framed the product as a practical tool for product managers and software developers rather than a direct consumer launch. By packaging the Secure Element applet with the software kits, it is trying to lower the engineering threshold for institutions that want to test or deploy their own wallet functions.

This builds on Mastercard Digital Enablement Service, the tokenisation technology introduced in 2014 that underpins many digital payment arrangements. Mastercard says it has worked with companies including Apple, Google and Samsung to support contactless payments at scale through that infrastructure.

The new service extends that role from behind-the-scenes tokenisation into more of the wallet creation process. In effect, Mastercard is positioning itself as an enabler for companies that want to move from card provisioning to offering a fuller mobile wallet experience within their own branded applications.

Work is already underway with several partner banks, and consumers may start to see some of the resulting wallet features appear in selected markets by the end of the year.

The software development kits are now available globally wherever Mastercard Digital Enablement Service tokenisation is enabled, across more than 200 countries and territories.