American Express says it is uniquely positioned to offer the service thanks to its "closed-loop" business model in which it acts as card issuer, merchant acquirer and payment processing operator.
In this context, a network effect is a positive feedback loop whereby platforms with stronger ecosystem of developers, content and service providers attract more customers.
Oltio is a mobile payment service provider based in South Africa and will offer MasterCard?s open loop and remote payments solutions to merchants in the country.