MasterCard launches online mall

Credit card giant MasterCard is to open an online shopping mall. Using its marketing prowess, MarsterCard is partnering with an internet company that specialising in shopping and says it can predict customer spending patterns and the kind of purchases they are likely to make.

The online mall, to be called MasterCard Marketplace, relies on technology developed by Next Jump, a New York company that monitors customer behaviour from thousands of retailers and uses the data it gathers to help suppliers and brand tailor their product offerings.

Whilte MasterCard hopes to re-shape the online retail business, the New York Times aptly commented luring consumers to a shopping site run by a payment network rather than a retailer is an uncertain proposition.

Some privacy advocates, meanwhile, say the technology makes them uncomfortable, and that personal data is being used without the consumer's control.

A variety of companies anticipate consumer buying behavior and tailor their marketing programs accordingly, including credit rivals American Express and Visa. MasterCard's competitors are also aiming to expand their presence in online commerce and American Express currently operates a site called "Daily Dish" that offers discounts and Visa is in the process of introducing RightCliq, intended to help consumers comparison-shop online.

Next Jump's selling point is that is draws on buying patters across thousands of retailers, with a wealth of consumers to analyse.

About the mall, MasterCard MarketPlace is a personalized service available to eligible cardholders that offers savings on brands and services from well-known merchants. Participating merchants include fashion retailers such as Bally, Brooks Brothers, Ann Taylor, Target, Nike, and over 25,000 others.

Source: New York Times