PAYPASS MOMENTUM - MASTERCARD NEWSROOM
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Last updated: May 2011
PayPass™ Momentum
PayPass™ is an innovative contactless payment feature that provides consumers with a fast and convenient
alternative to cash for their everyday purchases, and can be added to any MasterCard® or Maestro® account.
Consumers simply tap their PayPass-enabled card or device (such as a key fob enhanced with a payment tag)
on a specially equipped merchant terminal, eliminating the need to fumble for cash and coins, swipe or hand
their card over to a clerk. Signatures are not required for PayPass purchases $50 or less (or local currency
equivalent) in all regions except Europe or countries which have previously approved PayPass limits, further
speeding customers‟ transactions. PayPass also provides better record-keeping than cash and is ideal for
quick payment environments where speed is essential, such as quick-serve restaurants, gas stations, drug
stores, vending machines, movie theaters, transit stations, and sports arenas.
PayPass Continues to Gain Strong Momentum Worldwide
As of Q1 2011, more than 92 million PayPass cards and devices have been issued for use at approximately
311,000 merchant locations worldwide.
There are a number of PayPass trials and rollouts currently underway in 37 countries including Australia,
Bermuda, Brazil, Canada, China, France, Germany, Hungary, India, Indonesia, Italy, Japan, Kazakhstan,
Korea, Lebanon, Malaysia, Mexico, Mongolia, New Zealand, Norway, Philippines, Poland, Portugal,
Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab
Emirates, the United Kingdom and the United States.
MasterCard PayPass on Mobile Devices
Consumers may be willing to leave home without their wallets, but, increasingly, they won‟t leave home
without their mobile phones. Mobile is transforming the payments space and smartphones have created a
new context in consumers‟ lives with 300 million new phones sold in 2010 and an additional 400 million
expected to be sold in 2011 (according to Ericsson) – creating an enormous opportunity for mobile payment
adoption.
MasterCard has led the transformation of mobile phones into secure contactless payment devices; we have
pioneered the development of unique mobile information services to facilitate and promote commerce; and
we continue to be a champion of global mobile payment standards. MasterCard now has PayPass-enabled
phone trials and rollouts underway in numerous regions around the world.
MasterCard PayPass Momentum To-Date
2011
MasterCard PayPass has continued to gain positive momentum in 2011. Here is an overview of
momentum to date:
o In March, MasterCard announced that Gemalto – a leader in digital security – became the
first Mobile NFC payment application in the World to be certified by MasterCard. Gemalto
passed the Mobile MasterCard PayPass M/Chip 4, the brand new MasterCard payment
specification designed for mobile near field communications (NFC). This major
breakthrough paves the way for mass commercial rollouts of NFC payment across the world.Last updated: May 2011
o In February, MasterCard welcomed CIBC as a new Canadian issuer of MasterCard PayPass
credit cards. As of Q3 2010, there were more than 19 million MasterCard credit cards in
Canada featuring PayPass technology.
o In January, MasterCard announced a partnership with Transport for London (TfL) for the
exclusive branding of TfL‟s Oyster card wallet for 2011. The partnership is another
milestone in MasterCard‟s strategy to raise awareness of PayPass contactless payments in
transport systems, as cities such as London move toward enabling contactless open loop
payments on their trains, tubes and buses.
2009-2010
MasterCard and its partners launched or completed a number of mobile trials continuing the
momentum of the mobile form factor for contactless payments.
o MasterCard, Gemalto, Garanti Bank and Turkish mobile phone operator Avea joined forces
to launch the official rollout of Turkey‟s NFC initiative involving an antenna-equipped SIM
card mobile phone payment functionality. Turkish consumers are the first in the world to
have the opportunity to make their mobile phones compatible with NFC technology via an
N-flex SIM card which carries a flexible NFC antenna.
o Citi announced that they will be making MasterCard PayPass contactless payment tags
available for a majority of Citi credit cards. The tags can be affixed to the back of mobile
devices and can be used to make contactless payments at any merchant worldwide that
accepts PayPass transactions.
o MasterCard announced plans to pilot Gemalto‟s Upteq N-Flex mobile payment device in
Singapore. MasterCard and Gemalto will team up with DBS Bank, local prepaid card
specialist Ez-Link and telco StarHub to conduct the trial, which will be available for EZ-
Link Fevo MasterCard cardholders. The device is a wafer-thin chip that can be inserted into
a variety of different mobile phones to enable users to make NFC payments at PayPass-
enabled terminals throughout the city.
o Barclaycard and Orange announced they would enable consumers to use their mobile phones
to pay for goods and services at retailers by taping a handset against a reader, targeting a
customer base of 28 million UK consumers.
o In Turkey, MasterCard, Akbank and Turkcell launched one of the first mobile payments
pilots in Europe. All transactions made with Akbank‟s Axess PayPass credit cards will be
made through GSM phones with Turkcell lines having the PayPass technology. No PIN and
signatures will be required for payments under 35 TL‟s.
o In Canada, results from the Canada NFC trial with Bell Mobility were deemed a success.
MasterCard worked with Bell Mobility to introduce near-field communication mobile
phones with PayPass payment functionality. During the trial, subscribers were able to make
secure purchases with their phones at any location in Canada that accepted PayPass.
MasterCard PayPass adoption for public transportation payment continues around the world:
o In Brazil, MasterCard, Credicard, Citibank‟s Brazilian credit card administrator, and
acquirer Redecard launched MasterCard PayPass in Rio de Janeiro for public transportation
and other quick service merchants - the first contactless transit payment product to be
introduced in Latin America.
o In the UK, RBS WorldPay and MasterCard launched a PayPass trial in Liverpool with
Stagecoach buses.
o In the US, MasterCard continued to see momentum in acceptance at airport parking lots with
McCarran International Airport in Las Vegas, Norfolk International Airport, Miami
International Airport and Philadelphia Parking Authority announcing their acceptance of
PayPass.Last updated: May 2011
o In Italy, MasterCard launched the Milano AmaMi Card, combining a number of benefits
relevant for people living or staying in Milan including MasterCard PayPass. The card
bundles services and discounts related to public administration, transportation, culture and
tourism.
MasterCard marked the fifth anniversary of PayPass in Asia/Pacific with a charitable „Tap & Give‟
initiative benefiting needy communities in Korea, Taiwan and Malaysia. Each time a cardholder
taped a PayPass card or device to pay for a purchase at selected merchants in the three markets,
MasterCard donated a fixed amount or percentage of the transaction to appointed charities.
MasterCard was recognized by Frost & Sullivan as “Company of the Year” for the global
performance of PayPass, innovation and unparalleled excellence in the global contactless payment
market, competitive strategy, customer satisfaction and leadership.
Europe saw significant PayPass momentum with key retail partners.
o MasterCard and global retail leader Carrefour announced the launch of the PASS
MasterCard card as a result of a partnership designed to offer French consumers the very
latest in „best-in-class‟ card payments. The new card was rolled-out in France in February
2009 by Carrefour‟s financial services‟ subsidiary, Société des Paiements PASS.
o In Italy, MasterCard and IntesaSanpaolo deployed PayPass cards and terminals across the
city of Milan starting in November. At the end of 2009 there were more than 80,000 cards
and over 800 POS terminals PayPass enabled with acceptance at retailers such as:
Esselunga, a major supermarket chain - leader in the Milan area, Zara (fashion), Decathlon
(sportswear), Blockbuster (media), Mondadori and Feltrinelli (two large bookstores and
editorial groups), UCI Cinemas,Total (petrol), Chicco and Prenatal (Babywear), BricoCenter
(DIY) and Autogrill group (fast food chains).
Merchants that implemented PayPass acceptance so far in 2009 have expressed their satisfaction:
o Philadelphia Parking Authority: "Accepting MasterCard PayPass at our airport parking
facilities makes traveling easier by offering our passengers a fast and convenient payment
option to quickly get to their final destinations," said Vincent J. Fenerty, Jr., executive
director of the Philadelphia Parking Authority. "Making this upgrade to our airport parking
facilities fits well with our commitment to provide the highest levels of customer service and
enhance the overall airport experience." (press release)
o Stagecoach: "This new state-of-the-art technology will make bus travel in Liverpool faster
and more convenient than ever before and we believe it will help attract more people onto
our greener, smarter bus services. Customers will soon be able to use their PayPass credit
and debit cards on all 200 Stagecoach Merseyside buses across Liverpool - all it takes is a
tap of their card and off they go." (Press release)
o Sports Authority: According to Tom McVey, senior vice president, Store Operations, Sports
Authority. “Accepting MasterCard PayPass will help keep our checkout lines short, so
customers spend less time waiting in line when they make their purchases.” (Press release)
o Compass Group: “Our on-site cafeterias typically handle large groups of people at
lunchtime, and our operators need the best use of technology to maximize speed of service to
our customers to enhance their dining experience,” said Rob Watkins, CIO, Compass Group
North America. “By expanding payment options to include MasterCard PayPass, we are
able to offer not only convenience, but also peace of mind from using a secure system.”
(Press release)
o Hess: “Our customers are always looking for greater speed, security and convenience at
Hess locations, and increasingly they prefer electronic forms of payment over cash,” said
Rick Lawlor, vice president, Retail Sales and Marketing, Hess Corporation. “AcceptingLast updated: May 2011
MasterCard PayPass means we can meet our customers' needs and continue to enhance the
customer experience, which is the Hess Way.” (Press release)
o Manchester City Football Club: The technology “will help reduce queuing time and allow
supporters to get into their seats for the game.” (Contactless News)
2008
Growing validation for PayPass continues as acceptance grows across retail, transit and sports
stadiums around the world, amplifying the benefits of Tap & Go technology.
More mobile trials launched around the world, including:
o ING launched NFC mobile Maestro PayPass trial in Romania
o Bell Mobility NFC trial in Canada
o U.S. Bank, MasterCard Worldwide and Nokia announced the introduction of a mobile
payments pilot program in Spokane, Washington
o MasterCard, Garanti Bank and Turkcell announced mobile wallet pilot in Turkey
The transit sector continues to benefit from the speed and convenience of PayPass.
o RATP working to improve speed of access to transit in Paris with PayPass
o Liverpool buses accept PayPass
o Taxis in London accept PayPass
o Taiwan MoneyCard officially launched for Kaohsiung Mass Rapid Transit
o Authority and NJ Transit announced pilot test that will allow customers to use MasterCard
PayPass and other contactless cards and devices to pay their transit fare
Prepaid cards also incorporated contactless PayPass technology.
o Delta City and Banca Intesa sold top-up gift cards with PayPass in Serbia
o MBNA and the Manchester City Football Club to launch Europe‟s first pilot program to
issue season ticket holders with a reloadable MasterCard Prepaid with PayPass contactless
card
Retailers around the world leveraging the benefits of speeding consumers through the lines with
PayPass accepted in New York & Company stores, Faber Coe & Gregg US locations, Sobeys stores
in Canada, Staples, Bureau en Gros, Rite Aid and the Paradies Shops.
Merchant testimonials in support of PayPass included:
o Paradies Shops: "After installing MasterCard PayPass readers we immediately began to
receive positive feedback from our customers about not having to hand over their payment
card to a clerk, and about the increased speed at checkout when payments are made using
PayPass," said John O‟Hare, Managing Director of IT, The Paradies Shops. "As a company
we have seen more customers using payment cards as a method of payment verses cash, and
as a result our average ticket has gone up, since customers aren't limited to the cash they
have on hand when making purchases.“ (Press release)
o Liverpool Stagecoach buses: “This new state-of-the-art system will make bus travel faster
and more convenient for thousands of people in Liverpool every day and help attract car
users to more sustainable public transport. (Press Release)
o Manchester City Football Club: The technology “will help reduce queuing time and allow
supporters to get into their seats for the game.” (Contactless News)
2007Last updated: May 2011
By the end of 2007, there were 20 million MasterCard PayPass devices in circulation globally accepted
by 80,000 merchants in 20 countries. This was a significant milestone for PayPass as electronic
payments continued to grow around the world.
Mobile PayPass began to build momentum outside of the US as a new form factor
o PayPass MasterCard, in collaboration with SoftBank Mobile Corp., Orient Corp.,
Samsung Electronics Co., Ltd, Gemalto and Hitachi Ltd., announced plans to launch
Japan‟s Near Field Communication (NFC)-enabled mobile payment platform
o Taiwan Mobile and Taipei Fubon Bank began the launch of MasterCard PayPass in
mobile phones
o MasterCard and GSMA began pilot on International Mobile Money Transfers
o RBS trialed mobile Maestro PayPass in U.K.
o DnB NOR and Telenor, represented by Telenor Nordic and Telenor Research and
Innovation in Norway worked with MasterCard to offer mobile PayPass functionality
Quick service restaurants, vending machines and gas stations remain key merchant verticals for
growing PayPass acceptance around the world
o McDonald‟s in Poland accepting PayPass
o KFC restaurants throughout Malaysia began accepting PayPass
o USA Technologies and Canteen Vending add PayPass acceptance
o BP adds PayPass acceptance at all retail sites
o Taco Bell tests PayPass in their locations
Other merchant categories began to implement PayPass acceptance to improve experience for
cardholders and continued to express their satisfaction with PayPass
o Lufthansa Miles & More Credit Card in Germany, enabling customers to benefit from
innovative PayPass technology for contactless payment
o In the US, ShopRite, Office Depot, Einstein Bagels and Tully‟s Coffee announced
PayPass acceptance
o Meijer Inc.: "The egg has hatched," said Andrea Brandt, financial services manager at
Meijer inc., which has accepted and issued contactless payment cards since 2005. Based
on 15,000 contactless payment terminals in 181 stores, Brandt reported a monthly sales
lift of 44% for customers paying with contactless cards. (Smart Card Alliance)
o Tim Hortons: "It was really important to us to implement a technology that was going to
be fast, especially in our drive-throughs, where we do quite a brisk business," said a
[Tim Hortons] spokeswoman. Since rolling out PayPass, Tim Hortons' transaction times
are faster, she said, although she couldn't give specifics. "People aren't fumbling for
change." (Card Technology)
o Boston Culinary Group, Dolphin Stadium: "Typically hockey fans have the half hour
before and the two 15-minute [intermissions]. I have one hour to do my business." He
estimated the new devices should speed service by at least 25 percent. (South Florida
Sun-Sentinel)
o Xcel Energy Center: On average, the cards shave close to 30 seconds off a transaction
that usually involves groping for cash and fumbling with change, said Kathy Ross, Xcel
Energy Center public relations manager. "Anything that helps people speed up the
process and get back to their seats and don't miss a moment of the action, that's what
we're looking for," Ross said. (Star Tribune)
2006Last updated: May 2011
Increased momentum outside of the U.S. helped drive industry leading growth as identified by Frost &
Sullivan’s “Market Penetration Leadership Award” in 2006 and Card Technology’s recognition of Art
Kranzley as “Visionary of the Year”.
By the end of the year, PayPass had been rolled out in the United States, Canada, United Kingdom,
Japan, Turkey, Korea Lebanon, Malaysia, Mexico, Taiwan, Philippines, South Africa, Australia and
France.
In the U.S., MasterCard worked closely with USA Technologies to trial and rollout PayPass
acceptance for tollbooths and vending machines, including those with Cadbury Schweppes and
Coca-Cola Bottling Company
Stadiums continue to see benefits of PayPass
o Nine Major League Baseball teams accept PayPass at concession stands
o Acceptance at NFL Chicago Bears‟ stadium, Soldier Field
New form factors for PayPass were rolled out
o PayPass wristband trialed at Giants Stadium compliments of MasterCard
o NFC phone pilots with Cingular, Nokia and Citigroup in New York and with Nokia and 7-
Eleven in Dallas while MasterCard and G&D launched the world‟s first full-scale over-the-
air secure personalization solution for contactless mobile payments
o First PayPass watch launched with ChinaTrust as companion to credit – the technology on a
prestigious OSCARDS 2006 Award
o Taipei Fubon Bank launched the world‟s first three-dimensional MasterCard PayPass key
fob for 2006 FIFA World Cup™
Transit remained an area of focus for PayPass
o Acceptance starting in taxicabs and at tollbooths in the U.S.
o MTA, Citigroup and MasterCard trialed PayPass in select subway stations
o Acceptance at public highway service and rest areas in Taiwan in collaboration with Nan
Ren Hu Corporation
MasterCard remained industry‟s contactless technology leader with the first internationally accepted,
dual-interface contactless EMV payment solution launched in Malaysia.
Merchant testimonials expressed satisfaction with PayPass
o Sheetz, Inc.: Mr. [Rich] Steckroth, [manager of new business development, Sheetz Inc.,] said
Sheetz decided to accept contactless cards mainly to speed up transactions and free up
parking spots. Convenience stores need to move customers in and out fast, he said. "If there's
a full lot, a person will drive by, so if we can make an empty spot, that's a good thing…The
time savings - about eight seconds a transaction - comes from consumers' not having to
extract cards from their wallets, put them back in, and sign receipts.” (American Banker)
o Baltimore Ravens Stadium: At the 70,000-seat M&T Bank Stadium, home to the Baltimore
Ravens football team, cardholders seem to be spending more at concession stands. The
stadium began accepting credit, debit, and contactless cards last season, and the amount of
money spent on food and beverages increased about 10%. (American Banker)
2005Last updated: May 2011
MasterCard gained global recognition of its innovative achievements with PayPass. Key vertical areas
– particularly those where speed is essential – began seeing the benefits of accepting contactless
payment technology.
PayPass awareness begins to build through advertisements and implementations in new merchant
environments
o The first broadcast execution of a the “Priceless” campaign supporting PayPass is also
launched featuring acceptance at a McDonald‟s location
o Football stadiums and rewards programs began benefiting from PayPass – the technology
was incorporated into the MBNA Seahawks and MBNA Ravens Extra Points credit card
programs with acceptance implementations in their stadiums
o To support PayPass awareness NFL legend Troy Aikman “paid” with PayPass and then
“passed” lunches out to members of the Madison Square Boys and Girls Club at a
McDonald‟s restaurant in midtown Manhattan
o World‟s first MasterCard OneSmart™ PayPass™ Chip Combi Card implemented as part of
the Kaohsiung City Government (KCG) e-ticket transportation project in Southern Taiwan
o MasterCard and USA Technologies begin working together to provide a faster and more
convenient payment option for use at vending machines
MasterCard received recognition for its PayPass innovation and implementations
o The MasterCard OneSmart PayPass Combi card – the TaiwanMoney Card used for transit
fares in seven cities in Southern Taiwan with a contactless application – won first place in
the transport competition of the 10th annual Sesames Awards Ceremony held at CARTES,
the international smart card show in Paris
o MasterCard OneSmart™ PayPass™ was recognized as the most innovative payment
product launched in 2004 by the European Payments Consulting Association (EPCA) and
European Card Review Innovation Awards
Convenience stores and gas stations across the U.S. and Canada accept PayPass
o Citi Cards Canada and Petro-Canada, Canada‟s Gas Station launched first PayPass
technology in Canada
o Wawa convenience stores and gas pumps, 7-Eleven stores and Sheetz locations in the U.S.
began accepting PayPass
o PayPass pilot launched in Japan with Pocket Card and Itochu Enex
o U.S. super center chain Meijer Stores accept PayPass at all of its locations, including gas
pumps; also launched PayPass-enabled Meijer Platinum MasterCard® card issued by GE
Money
o Duane Reade drugs stores began accepting PayPass at all of its locations
Banks around the world continue to rollout contactless technology for debit and credit products
o Citibank Debit MasterCard PayPass™ key fob in NY launched to Citibank customers
o Chase rolled out contactless credit card programs – called “blink” – across U.S. cities
o MBNA began issuing credit cards with PayPass contactless payment technology to its new
and existing customers in Atlanta
o HSBC Bank USA became first bank to completely reissue its debit cards to include PayPass
while KeyBank was the first bank in the U.S. to offer its customers PayPass debit cards
2004Last updated: May 2011
PayPass momentum picked up with deployments globally and growing acceptance by major
merchants.
McDonald‟s began accepting PayPass at select McDonald‟s restaurants in the U.S.
Bank of the Philippines Islands pilot PayPass – first bank in Southeast Asia to implement trial
Launch of OneSmart PayPass – industry‟s first dual-interface contactless EMV solution
Motorola NFC mobile trial
People‟s Trust Company of Vancouver and Mint Technology Corp. of Toronto began issue PayPass-
enabled cards in Canada as part of a pilot program
Orient Corporation launched a PayPass pilot program in Japan
2003
MasterCard trials PayPass in Orlando and Dallas.
MasterCard‟s objectives in the trials were to test the real-world application of contactless payments –
specifically, to ensure that the operational reliability achieved in its headquarters test could be achieved on a
larger scale with a variety of terminals at the point of sale. MasterCard also sought to better understand the
actual cardholder and retailer experience associated with contactless payments. MasterCard saw clear
evidence that consumers were using their PayPass cards when they once would have used cash.
In Orlando, MasterCard worked with Chase, Citibank and MBNA and more than 60 retail locations
and 16,000 cardholders using PayPass in a traditional card form factor.
MasterCard also conducted a PayPass trial in Dallas, Texas, where MasterCard worked with Nokia
to incorporate MasterCard PayPass into mobile phones. Results from the Dallas trial reinforced
speed and convenience as top benefits.
2002
MasterCard launches PayPass.
In December, MasterCard announced the availability of MasterCard PayPass™, a new “contactless”
payment program that provided consumers with a fast and convenient way to pay for their small-ticket
purchases.You can also read
