To much fanfare MasterCard just launched their new PayPass Online not to be confused with their PayPass Wallet NFC offering.

We’ve packed a whole lot of choice into one ingenious, little button. You see, the PayPass checkout button not only lets you use our PayPass Wallet to checkout quickly and securely, it lets you use any digital wallet offered by a PayPass partner.

I applaud them for trying but unfortunately it is flawed on many different levels. They missed a great opportunity, but they don’t even seem to fix the fundamental security issues in the existing network.

First the good:

OAuth 1.0A
User only enters payment information once
User only enters shipping information once
Example code for Java/.NET/Android/IOS
Partner’s can create their own wallets

Now the very bad:

No OAuth 2
Returns full credit card account to merchant (yes you read right)
Very complex flow
No embedded payment functionality
Reliance on 3rd …