MasterCard announced on Monday that it will acquire mobile wallet and software provider C-SAM as part of an effort to accelerate the development and rollout of MasterPass, its digital wallet service.
The announcement builds on a strategic agreement reached between the two in 2012 and a minor investment from MasterCard.
C-SAM has powered commercial mobile payments services in the U.S., Singapore, Mexico, Japan, India and Vietnam. The platform supports loyalty incentives, banking, bill-pay and customer-specific offers.
MasterCard said the acquisition of C-SAM adds to its expertise in developing mobile platforms and will support the company’s work with financial institutions to bring innovative solutions to the market.
“Consumers today are living digital lifestyles, shopping in new ways using a range of new products and devices,” MasterCard Chief Emerging Payments Officer Ed McLaughlin said. “Bringing C-SAM’s mobile expertise into MasterCard will help us launch a wider range of mobile and virtual solutions better and faster – bringing convenience and choice to consumers, while adding value to our expanding partnerships with telcos, governments and merchants.”
MasterCard said C-SAM’s on-device app and back-end infrastructure will help to enable MasterPass technology in-store and across numerous communications technologies, such as NFC, remote checkout and QR/barcodes.
“The acquisition of C-SAM is a significant milestone in our company’s history,” C-SAM CEO Felix Marx said. “While we have enjoyed a strong longstanding relationship with MasterCard, the team is excited to be formally joining such an innovative and industry-leading organization to deliver end-to-end device-based solutions for service providers around the globe.”
The terms of the acquisition were not disclosed and are subject to regulatory approval. The deal is expected to close by the beginning of April.