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While some transactions made with MasterPass would have otherwise traveled over MasterCard's processing network via use of a plastic card, Mr. McLaughlin said the service can help improve the shopping experience for consumers, potentially increasing overall use.
WSJ: Card Networks Take on Plastic With Mobile Platforms
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As a result, every type of company involved with a debit card transaction, from the middle-man payment processing service to the company that owns the processing network to the bank that issues the card stands to have reduced revenue than they would have had otherwise.
FORBES: Credit Card Users May Pay an Additional Fee
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As Jacobson points out, the mobile commerce ecosystem includes payment processing network companies such as Mastercard (MA), Visa (V) and American Express (AXP) as well as point-of sale (POS) equipment companies like VeriFone (PAY) and NCR Corp. (NCR), which should help alleviate privacy and security concerns.
FORBES: Watching VeriFone as Mobile Payments Explode