MasterCard Announces Issuance of 50 Millionth PayPass Card

PayPass provides a convenient payment alternative to cash. Consumers no longer need to fumble for cash and coins, swipe a card or even sign a receipt when making purchases of US$25 or below. They just need to tap their PayPass-enabled devices on the readers in the over 141,000 participating merchant locations worldwide, as of 4Q 2008, and they are on their way.

“At a time that is ripe with challenges, we are focused on providing simple, valuable payment innovations that drive success for all of our partners,” says Cathleen Conforti, Global PayPass Product Manager, MasterCard Worldwide. “With PayPass passing this significant 50 million-issued milestone, MasterCard continues to lead the contactless payment market. PayPass is the payment innovation that is displacing cash while making transactions faster, easier and more secure in a way that creates a more efficient system of global commerce for consumers, merchants and financial institutions.”

"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," he said.

MasterCard PayPass Demonstrating Value in Marketplace

The benefits of PayPass to consumers, merchants and financial institutions are now more visible than ever. Based on a 2008 US Consumer Benchmark Study:

• 77 percent of consumers that have a PayPass –enabled card or device use it as their primary form of payment, which demonstrates its ability to bolster relationships for financial institutions with cardholders
• 68 percent of cardholders who have used their PayPass-enabled card report that it enables them to use cash and checks less often
• With PayPass, merchants are growing both their customer base and loyalty as an increasing number of consumers with a PayPass-enabled cared or device – 14 percent, up from 8 percent last year – are making purchasing decisions based upon PayPass acceptance
• Currently, the top merchants that have received a visit from a new customer because of their PayPass acceptance include quick-service restaurants (20%), pharmacies (17%), and supermarkets (13%). However, consumers who are aware that their card has contactless functionality are interested in using that feature at a wider range of merchants including department stores (61%), home improvement outlets (46%), movie theaters (42%), bookstores (41%), and sports venues (37%).
• Consumers also expressed interest in using alternative PayPass form factors including tags (42%), key fobs (41%), and mobile phones (33%).

Recent PayPass Announcements Driving PayPass Growth Globally

MasterCard and global retail leader Carrefour launched the PASS MasterCard:
Customization of services, flexibility in use, and the very latest card technology, including the MasterCard PayPass Tap & GoTM contactless functionality, have been combined into this new card program specifically for the Carrefour customer. Moreover, the card features a joint credit/debit functionality so consumers can decide how to pay for their purchases at the point-of-sale.

MasterCard PayPass Payment Tags Get Mobile Initiative on the Move:
In the highly competitive Turkish marketplace, Garanti Bank, the country’s second largest bank and one of the leading European issuers of MasterCard PayPass, has demonstrated their commitment to innovation by becoming the first issuer to implement a mobile phone pilot with PayPass payment stickers.

MasterCard, RATP, and La Banque Postale Explore use of MasterCard PayPass in Paris’s Public Transit System.
MasterCard Worldwide and Régie Autonome des Transports Parisiens (RATP), the primary operator of public transit in the Paris metro area, announced that they are cooperatively studying the feasibility of using MasterCard PayPass contactless payment cards to access public transport service.

MasterCard Announces Official Operation of TaiwanMoney Card at Kaohsiung Mass Rapid Transit
MasterCard in collaboration with Kaohsiung City Government and Kaohsiung Rapid Transit Corporation, announced that TaiwanMoney Card – the world’s first dual interface, contact and contactless payment card for transportation and everyday life expenses – is now officially in operation at Kaohsiung Mass Rapid Transit (KMRT).