SnapScan and Masterpass are two popular mobile payment solutions that allow users to make payments using their smartphones. While they share the common goal of facilitating cashless transactions, there are significant differences in their operation, usage, and target markets. Here’s a detailed comparison of the two:
1. Overview of SnapScan and Masterpass
SnapScan:
- Origin and Development: SnapScan is a South African mobile payment app developed by FireID in partnership with Standard Bank. It was launched in 2013 and quickly gained popularity in South Africa for its simplicity and ease of use.
- Target Market: SnapScan is primarily used in South Africa and is designed to work seamlessly with the South African banking system.
- Payment Method: SnapScan allows users to make payments by scanning a QR code displayed at participating merchants. The app is linked to the user’s bank account or credit card, enabling quick and secure payments.
Masterpass:
- Origin and Development: Masterpass is a global digital payment service launched by Mastercard. It was introduced in 2013 as a way to streamline digital payments and provide a unified payment experience across different platforms.
- Target Market: Masterpass is used globally and supports various currencies and banking systems. It is designed to be a universal payment solution that can be used across different regions and industries.
- Payment Method: Masterpass enables users to store all their payment information (such as credit cards, debit cards, and other payment methods) in a digital wallet. Payments can be made by scanning a QR code, entering a PIN, or tapping a contactless terminal.
2. Key Differences
Geographical Focus:
- SnapScan: SnapScan is a South African-centric solution. Its primary focus is on the South African market, and it is tailored to meet the needs of South African consumers and merchants. SnapScan’s integration with local banks and its widespread acceptance in the country make it a convenient option for South African users.
- Masterpass: Masterpass is a global solution offered by Mastercard, with a presence in many countries around the world. It is designed to be a versatile payment solution that can be used across borders, making it suitable for international travelers and businesses with a global footprint.
Integration with Financial Institutions:
- SnapScan: SnapScan is closely integrated with South African banks, particularly Standard Bank. Users can link their SnapScan accounts to their local bank accounts, and transactions are processed through the South African banking system. This integration makes SnapScan a seamless option for South African consumers.
- Masterpass: Masterpass is not tied to a specific bank but is instead a product of Mastercard. It allows users to store multiple payment methods in their digital wallet, including cards from various banks and regions. This flexibility makes Masterpass appealing to users who want a unified payment solution that works across different banks and countries.
Payment Experience:
- SnapScan: The payment process with SnapScan is straightforward: users scan a QR code at the merchant’s point of sale, enter the amount to be paid (if not pre-set), and confirm the payment. SnapScan is known for its simplicity and ease of use, making it a popular choice for small businesses, markets, and individual merchants.
- Masterpass: Masterpass offers a more versatile payment experience. In addition to QR code scanning, users can make payments online, in-app, or at contactless terminals. Masterpass is designed to work across different platforms and devices, providing a consistent experience for users whether they are shopping online, in-store, or within an app.
Merchant Acceptance:
- SnapScan: SnapScan is widely accepted in South Africa, particularly among small businesses, restaurants, and markets. It has become a common payment method in the country, with many merchants displaying SnapScan QR codes for easy payment.
- Masterpass: Masterpass is accepted globally at merchants that support Mastercard. This includes a wide range of online stores, retail outlets, restaurants, and more. Because of its global reach, Masterpass is suitable for users who frequently travel or shop internationally.
Security Features:
- SnapScan: SnapScan uses encryption and tokenization to secure transactions. Additionally, users must authenticate payments through the app, providing an extra layer of security. SnapScan’s focus on the South African market allows it to incorporate local security measures that are effective in the region.
- Masterpass: Masterpass leverages Mastercard’s global security infrastructure, including encryption, tokenization, and biometric authentication. The ability to store multiple payment methods securely within the digital wallet adds a layer of convenience without compromising security. Masterpass also complies with global payment security standards, making it a robust option for users worldwide.
User Experience and Interface:
- SnapScan: SnapScan’s user interface is designed for simplicity and ease of use. The app is lightweight, with a focus on quick payments through QR code scanning. This makes it particularly appealing to users who want a straightforward payment solution without additional features or complexities.
- Masterpass: Masterpass offers a more feature-rich experience, with options for managing multiple payment methods, storing loyalty cards, and even accessing special offers from participating merchants. The interface is designed to be versatile, catering to users who want a comprehensive digital wallet experience.
3. Use Cases
SnapScan:
- Local Businesses: SnapScan is ideal for small businesses, cafes, and markets in South Africa. Its ease of use and local focus make it a preferred payment method in these environments.
- Charitable Donations: SnapScan is also commonly used for donations to charities and non-profits in South Africa, where QR codes are displayed for quick and easy contributions.
Masterpass:
- International Payments: Masterpass is well-suited for users who need to make payments in different countries or currencies. Its global acceptance makes it a convenient option for international travelers and expatriates.
- Online Shopping: Masterpass is designed to streamline online shopping, allowing users to complete purchases quickly without entering payment details repeatedly. This makes it a popular choice for e-commerce transactions.
4. Pros and Cons
SnapScan:
Pros:
- Tailored for the South African market with strong local bank integration.
- Simple and user-friendly interface.
- Widely accepted by small businesses and individual merchants in South Africa.
Cons:
- Limited to South Africa, making it less useful for international transactions.
- Fewer features compared to global digital wallets like Masterpass.
Masterpass:
Pros:
- Global acceptance with support for multiple currencies and payment methods.
- Comprehensive digital wallet features, including storage of loyalty cards and offers.
- Strong security backed by Mastercard’s global infrastructure.
Cons:
- May be more complex for users who only need a simple payment solution.
- Acceptance varies by region, and not all merchants may support Masterpass.
5. Conclusion
SnapScan and Masterpass serve different purposes and cater to different user needs. SnapScan is an excellent choice for South African consumers who want a simple, locally-focused payment solution that works seamlessly with their bank accounts. It is particularly well-suited for small businesses and individual merchants in South Africa.
On the other hand, Masterpass offers a more versatile and globally-focused payment experience. It is ideal for users who need a comprehensive digital wallet that can handle multiple payment methods, currencies, and platforms. Masterpass’s global acceptance and security features make it a strong choice for international travelers and online shoppers.
In choosing between SnapScan and Masterpass, users should consider their specific needs, including where they typically make payments, the type of transactions they conduct, and whether they require a solution with local or global reach. Both platforms offer secure and convenient ways to pay, but their differences in scope and functionality make them suitable for different types of users and use cases.
