Mastercard has launched a new service called Mastercard Pay Local with the aim of improving the convenience of payments through local digital wallets. This initiative allows both resident cardholders and international travelers to link their credit and debit cards directly to digital wallets without requiring a prepaid account setup, thus enabling immediate spending. The Asia Pacific (APAC) region stands to benefit significantly, with over 35 million merchants accepting digital wallets like DANA in Indonesia, Touch ‘n Go in Malaysia, Bakong in Cambodia, and LankaPay in Sri Lanka.
The Pay Local service is particularly beneficial to micro, small, and medium enterprises (MSMEs), which have traditionally not accepted card payments. By facilitating card payments through digital wallets, these businesses can now offer a more convenient and modern payment option to their customers. Additionally, the service makes travel easier for tourists, who can use their cards seamlessly across various destinations without the hassle of dealing with multiple foreign currencies. This added convenience is expected to boost local economies by encouraging more spending from both residents and international visitors.
Sandeep Malhotra, Mastercard Asia Pacific’s executive vice president of products and innovation, emphasized that Pay Local extends Mastercard’s global network to partner wallets. This extension provides a low-cost, stable, and secure connection between merchants and Mastercard cardholders. For locals, the new service translates to greater flexibility in payment options, while tourists benefit from simplified transactions. Overall, Pay Local is set to significantly enhance the convenience and efficiency of digital payments across the markets in the APAC region, elevating the payment experience for both consumers and merchants alike.