MasterCard says it will work with Local Offer Network to integrate its deal platform into the services it offers to bank card issuers under the MasterCard Offers Services banner.

Mario Shiliashki, group head, US markets emerging payments lead, MasterCard, says: "Our collaboration with partners like Local Offer Network will make MasterCard the 'go-to' offers solution for merchants and issuers looking for a stronger connection with our cardholders."

The business of broadcasting merchant discounts to consumers has fuelled the massive growth of Groupon and is increasingly being viewed as a key component in the mobile shopping arena.

Merchants who sign up for the programme will be exposed to a broad consumer base through a simple, easy-to-navigate technology system, says Shiliashki. At the same time, issuers will have access to relevant and "geo-targeted" offers from hundreds of local and regional merchants.

The service is expected to go live with a first batch of merchants and issuers by the end of this quarter.

American Express already operates a similar service through social networking sites such as Twitter and FourSquare, while Visa Europe launched a Web portal offering deals and discounts from participating retailers to its UK cardholders in December.