MasterCard Canada has launched MasterPass, making Canadian customers the first in North America to be able to use the digital payments platform.

The digital wallet will enable secure check out through a cloud-based authentication method that can be used by consumers to store up to 25 credit cards, pre-paid credit cards, and debit cards branded by Visa or MasterCard.

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Merchants can plug in to the payment authentication system to accept credit card payments without requiring buyers to register on their own sites, and other financial institutions can white label MasterPass to offer their own digital wallets. Bank of Montreal will kick off the initiative with the launch of a MasterPass-enabled BMO Wallet in the coming weeks.

So far, MasterPass is being used for e-commerce transactions by four merchants: Porter Airlines, WagJag, Jaunt.ca, and Grocery Gateway. However, MasterCard estimates that about 800 vendors will be supporting the payments platform by the end of this year, and that 2,800 vendors will be using it by the end of next year.

The move was prompted by MasterCard data that revealed fast-paced growth in Canadian eCommerce. Overtaking retail sales, total Canadian eCommerce sales grew 26.6% over the past 6 months ending in February 2013, compared to just 2.9% growth in overall Canadian retail sales during the same period.

Jason Davies, vp of eCommerce at MasterCard Canada said:

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"With eCommerce growing by double digits, more and more Canadians want a secure, seamless and simple payment experience. Canadians are early adopters when it comes to digital payments and embracing new technologies; that’s why Canada is the first market in North America where we’re launching MasterPass."

When it comes to security, the platform is to raise the bar on registration and lower it on transactions, Davies says. Consumers can also activate a second layer of security that will have MasterPass send them a four-digit code via SMS that they will then have to type in to complete a transaction within a set amount of time.

Canada is one of four key markets MasterCard is focusing on its launch for MasterPass worldwide, with the US, Australia, and the UK also being targeted.

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