MasterCard Worldwide is launching MasterCard Marketplace, an e-commerce site promising tailored discounts and special deals each day for MasterCard members. The website will rely on technology that analyzes consumer behavior to display offers shoppers are most likely to buy on the site's front page.
On the new site, shoppers first set their preferences for the types of merchant offers they want to receive. They will be monitored on how they use the site and offers will be adjusted accordingly. Each offer is available for a limited time.
"If you see you've missed something you're interested in, the system lets you set a reminder for the next time a similar offer is available," Josh Peirez, group executive of innovative platforms, MasterCard Worldwide told Direct Marketing News. "Merchants can then use that information to manage their portfolio of offers."
The site will also offer "VIP Events," such as private shopping sessions from stores at a discount, as well as "Outstanding Offers," or limited specials posted each day at noon. Special offers from the MarketPlace include free shipping from a network of participating merchants across a wide variety of categories including apparel, jewelry, electronics and children's apparel.
Mr. Peirez said MasterCard is operating Marketplace separately from its existing rewards programs.
"Although this is very rewarding, we don't look at it as much as a rewards program as we do a shopping experience," said Mr. Peirez. "We see it as a way to play in a new space for us, connecting buyers and sellers on a fun, interactive page."
The New York Times questioned MasterCard's ability to attract consumers to a shopping site run by a payment network rather than a retailer. Although MasterCard said it has set up safeguards, privacy experts also have concerns.
Speaking to the Times, Anita Allen, a law professor at the University of Pennsylvania, said there is a cost for consumers who give up private information. "In the end, we turn into citizens who live in a world where we have no control over our own data," she said.
Discussion Questions: What do you think of MasterCard launching an online shopping mall? Do you think the company will face any push-back over its monitoring of shopper behavior or will consumers welcome offers?