PayWith's digital wallet can allow any merchant that accepts MasterCard to also accept mobile payments without buying new hardware.

The consumer-facing portion of the app relies on PayWith's partnership with MasterCard to generate single-use, time-stamped virtual credit cards, called mCards, at the point of sale. The merchant enters the card number, expiration date and security code from the mCard to complete the transaction.

After the purchase is complete, consumers receive marketing, loyalty offers and other incentives to engage with the merchant at a store or online via social media, PayWith CEO David Strebinger explained during a presentation at the FinovateFall conference, ongoing this week in New York. The app also uses geo-location to help consumers find merchants that accept the wallet.

Merchants are also provided with an online dashboard that lets them track their customers' purchasing habits, including visit count, trip dates and spend amount.

"Every single one of these transactions and all of these social actions are part of my profile so the merchant has a real good understanding of who my customers are and how they're spending," Strebinger said.

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