Mastercard launches Pay Local service to expand card payments

Announced ahead of the Singapore FinTech Festival, the service allows both resident cardholders and international travellers to link their credit or debit cards to a digital wallet, enabling quick transactions at participating merchants without the need to set up or top up a prepaid account. 

The service is initially rolling out across Asia Pacific, including partnerships with digital wallets such as DANA in Indonesia, Touch ‘n Go in Malaysia, Bakong in Cambodia, and LankaPay in Sri Lanka. Collectively, these partnerships open up access for cardholders at more than 35 million merchants in the region.  

Beyond Asia, Mastercard Pay Local will also be introduced in other regions with high digital wallet usage, such as Latin America, Eastern Europe, and the Middle East and Africa.

Expanding payment options for merchants and cardholders 

• The Mastercard Pay Local platform aims to benefit a wide range of users: 
• Local residents and travellers can make payments to micro, small, and medium enterprises (MSMEs) that may not accept traditional card payments, adding convenience for both consumers and merchants. 
• MSMEs gain access to a wider customer base without substantial infrastructure changes. 
• Digital wallet providers can attract more users, especially those who predominantly use cards, allowing for faster integration into new markets. 
• Card issuers increase the range of acceptance points for their customers. 

Mastercard officials highlighted the importance of the service, stating that it enables Asia’s digital wallets to process card-based payments across Mastercard’s extensive merchant network. This integration is designed to provide a stable and secure payment option that benefits both local residents and travellers who want to use their cards internationally in a manner consistent with their experiences at home. 

The new service builds on Mastercard's collaborations with major digital wallet providers, such as Alipay and Weixin Pay in mainland China and Octopus in Hong Kong. These existing partnerships have laid the groundwork for offering international travellers the option to use local digital wallets for transactions, regardless of the origin of their Mastercard cards. 

As Mastercard Pay Local expands, digital wallets throughout the region are increasingly able to support Mastercard cards for transactions at merchant locations accepting these wallets. Examples include GrabPay in Southeast Asia, Maya in the Philippines, ShopBack in Singapore, and TrueMoney in Thailand.