New MasterCard PayPass Utilizes Contactless Card Payment Technology.Business Editors PURCHASE, N.Y.--(BUSINESS WIRE)--Dec. 12, 2002 MasterCard International MasterCard Partners with Chase, Citibank, MBNA MBNA Monument Builders of North America MBNA Mercedes-Benz North America MBNA Maryland Bank, National Association MBNA Maryland Bank North America MBNA Mount Baker Nurses Association (Bellingham, Washington) and Multiple Merchants in an Orlando, Florida The city of Orlando is a major city in central Florida and is the county seat of Orange County, Florida. According to the 2000 census, the city population was 185,951. A 2006 U.S. Market Trial to Offer Consumers a "Simpler Way to Pay" MasterCard International today announced MasterCard PayPass(TM), a new "contactless" card payment program that provides consumers with a simpler way to pay. Using MasterCard PayPass, consumers simply tap or wave their payment card on a specially equipped merchant terminal that then transmits payment details wirelessly, eliminating the need to swipe the card through a reader. The new solution is ideal for traditional cash-only environments where speed is essential, such as quick serve and casual restaurants, gas stations and movie theaters. MasterCard is currently working with leading financial institutions - Chase, Citibank and MBNA - to trial MasterCard PayPass with numerous merchants in the Orlando, Florida area. Consumers taking part in the trial can use the card's "tap & go" feature at participating Orlando merchants, including Boaters' World, Chevron, City of Orlando Parking, Friendly's, Loews Universal Cineplex, Ritz Ritz elegant and luxurious hotel opened in Paris in 1898 by César Ritz; hence, ‘ritzy, putting on the ritz.’ [Fr. Hist.: Wentworth, 429] See : Luxury Camera and Wolf Camera. Quick serve restaurants and additional retailers will be added in January. Since the MasterCard PayPass card can be used exactly like existing magnetic stripe cards A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card. in addition to the new PayPass feature, consumers can also use it at any of MasterCard's more than 29 million acceptance locations around the world. "The introduction of MasterCard PayPass is a prime example of MasterCard's commitment to providing our customers, and their cardholders, with a variety of innovative and secure options to meet their evolving payment needs," said Art Kranzley, chief e-Business officer, MasterCard International. "MasterCard PayPass transactions are simpler and faster than cash, and leverage the high-level security of payment cards, that consumers have come to trust." The MasterCard PayPass Value Proposition The strength and appeal of MasterCard PayPass benefits all parties involved in the payments process - cardholders, merchants and financial institutions. MasterCard recently completed extensive consumer research that indicated 63 percent of consumers surveyed said that they would "definitely" or "probably" use MasterCard PayPass if their bank offered it to them. Also, consumers surveyed who would "definitely" use MasterCard PayPass indicated that it would replace cash in more than half (53 percent) of their future transactions. Consumers' feedback indicated that PayPass is perceived to be "innovative" and "fun to use," as well as an enhancement that "would make shopping less of a hassle Hassle () is a location in Närke, Sweden, where a Celtic treasure was found in 1936. It comprises a large bronze cauldron which contained two Bronze Age swords of the Hallstatt type, a pommel of bronze, two bronze buckets with ." Among the benefits to consumers, MasterCard PayPass is designed to: - Provide better record keeping than cash - Provide a quick, easy payment method, thereby improving the overall in-store experience - Increase the feeling of security, as cardholders remain in control of the card during transactions For merchants, MasterCard PayPass is designed to: - Be simpler and faster than cash, thereby speeding consumers through the check-out process - Increase average transaction amounts spent as compared to cash - Provide a reliable, trusted payment method that works well in "quick pay" environments - Help attract new customers and increase their loyalty For member financial institutions, MasterCard PayPass is designed to: - Increase Gross Dollar Volume (GDV GDV gastric dilatation/volvulus. ) by attracting payments away from cash - Open up new acceptance opportunities for "quick pay" environments - Increase accountholder loyalty for their card programs How MasterCard PayPass Works MasterCard PayPass is an enhanced payment card that features a hidden embedded Inserted into. See embedded system. computer chip and antennae. A cardholder card·hold·er n. One who holds a card, especially a credit card. card  hold simply taps or
waves his or her MasterCard PayPass card on a specially equipped
merchant terminal. The card then transmits payment details wirelessly,
eliminating the need for a cardholder to hand over his or her card for a
merchant to swipe through a reader. Account details are communicated
directly to the special terminals and are then processed through
MasterCard's highly trusted acceptance network. Moments after a
consumer taps the terminal with his or her PayPass card, they receive
payment confirmation and are on their way.MasterCard PayPass is built around globally interoperable The ability for one system to communicate or work with another. See interoperability. standards and relies on the ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Standard #14443 to transmit To send data over a communications line. See transfer. Track 2 data via radio frequency. In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , where the majority of transactions are authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: on-line, the payment application data is based on the magnetic stripe A small length of magnetic tape adhered to credit cards, badges, permits, passes and tokens. The tape is read by magnetic stripe readers incorporated into ATMs, identification readers and payment terminals. information. The card/terminal interaction is based the MasterCard Proximity Chip - Online Profile, which is a subset A group of commands or functions that do not include all the capabilities of the original specification. Software or hardware components designed for the subset will also work with the original. of EMV/ISO7816 commands. Bringing MasterCard PayPass to Market The MasterCard PayPass trial program is designed to test the real-world applications of a contactless payment Contactless payment systems are credit cards, key fobs, or other devices which use RFID for making secure payments. The built in chip and antenna enable consumers to wave their card or fob over a reader at the point of sale. card. This test builds upon the successful employee pilot that recently took place at MasterCard's Purchase, New York Purchase, New York is a hamlet of the town of Harrison, in Westchester County. Its Zip code is 10577. Purchase is home to Purchase College, which is part of the State University of New York system, Manhattanville College, a private liberal arts college, and the headquarters headquarters. Initial results from the employee pilot showed that purchase transaction time was reduced by up to 64 percent. In addition, the average transaction amount increased by 10 percent when using a payment card in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. cash. The Orlando trial will test the operational reliability, interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. , and cardholder and merchant experiences of MasterCard PayPass. Chase, Citibank and MBNA will be re-issuing cards that feature the enhanced payment technology to a sampling of their Orlando-based cardholders. Upon the expected successful completion of the Orlando pilot, MasterCard plans to introduce MasterCard PayPass to additional markets. MasterCard PayPass is MasterCard's global program name and it has already been approved for use in MasterCard's key markets. MasterCard is pleased to partner with the following companies in support of introducing PayPass: Chip Developer/Manufacturers: Infineon/SC2, OTI Inc./Samsung, Philips Semiconductor/Oberthur; Card Manufacturers: CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I Card Group, Oberthur USA; Card Personalization Custom tailoring information to the individual. On the Web, personalization means returning a page that has been customized for the user, taking into consideration that person's habits and preferences. Bureaux: First Data Corp, MBNA; POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale Providers: C-SAM C-SAM C-Mode Scanning Acoustic Microscope C-SAM Commerce for Secure Active Mobile , OTI Inc., Panasonic, Stella, VeriFone, ViVOtech, 3 Form Design; Testing & Compliance: Cadimes, Caradas, Consult Hyperion; Merchant Installation: Edgar Dunn, OTI Inc. Additional information is available at www.paypass.com. About MasterCard International MasterCard International is a leader in global e-business. MasterCard is focused on providing its member financial institutions with customized, meaningful global e-business solutions that connect them to their accountholders. Through its investment in industry innovation, participation in standards development and business alliances, MasterCard is staying in the forefront of technology integration to enable anytime, anywhere payments across multiple channels and various devices. MasterCard's global e-business solutions include Internet security ''This article or section is being rewritten at Internet security is the process of protecting data and privacy of devices connected to internet from information robbery, hacking, malware infection and unwanted software. , smart cards Example of widely used contactless smart cards are Hong Kong's Octopus card, Paris' Calypso/Navigo card and Lisbon' LisboaViva card, which predate the ISO/IEC 14443 standard. The following tables list smart cards used for public transportation and other electronic purse applications. , mobile commerce/wireless, business to business electronic commerce, and numerous emerging technologies. MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard, Cirrus and Maestro (1) (Maestro NT) An earlier name for scheduling software for Windows NT from Tivoli Systems, Inc. When IBM acquired Tivoli in 1996, the program was renamed IBM Tivoli Workload Scheduler. . More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. in circulation today. With approximately 25,000 MasterCard, Cirrus and Maestro members worldwide, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard's award-winning Priceless price·less adj. 1. Of inestimable worth; invaluable. 2. Highly amusing, absurd, or odd: a priceless remark. advertising campaign is now seen in 90 countries and in 45 languages, giving the MasterCard brand a truly global reach and scope. With more than 29 million acceptance locations, no payment card is more widely accepted globally than MasterCard. For the nine months ended September 30, 2002, gross dollar volume exceeded US$831.7 billion. MasterCard can be reached through its website at http://www.mastercardinternational.com. This press release contains forward-looking information. Although MasterCard believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from the forward-looking information contained in this release include: MasterCard's ability to achieve its strategic objectives; whether the terms of the transactions will be approved by MasterCard members and Europay shareholders; MasterCard's ability to realize the contemplated benefits of the transactions; changing market conditions; and other matters. MasterCard disclaims any obligation to publicly update or revise any forward-looking information. NOTE TO EDITORS: MasterCard PayPass artwork is available. MasterCard(R) PayPass(TM) Quote Sheet BANKS Chase "Chase is pleased to be working with MasterCard International to pilot this exciting new payment solution. MasterCard PayPass will provide faster transaction times than traditional payments, with similar levels of security - resulting in increased convenience and choices for our cardmembers." --Steven J. Kietz, Senior Vice President, Chase Cardmember Services Media Contact: Catherine Keary, 212-270-7171 Citibank "Citi Cards is committed to offering our cardmembers enhanced features that provide them with the best way to pay. MasterCard PayPass will simplify the way consumers pay at merchant locations where speed is essential, while providing the same security benefits as traditional payments." -- Bill Borden, Senior Vice President, Citi Cards Product and Business Development Media Contact: Maria Mendler, 212-559-0409 MBNA "The Orlando MasterCard PayPass pilot presents us with the opportunity to work with MasterCard to test and refine this innovative, new value proposition for our cardholders. MasterCard PayPass adds both value and utility to the traditional plastic card and allows us to preserve the same level of security that consumers have come to expect from MBNA." -- Michael Rhodes, Executive Vice Chairman, MBNA Media Contact: Brian Dalphon, Senior Executive Vice President of MBNA, 302-432-1251 MERCHANTS Friendly's "100% guest satisfaction and friendly service are core values for Friendly's. MasterCard PayPass fits very well with these values by enhancing transaction speed and providing more convenience for our guests." --Maura Tobias, Senior Manager Public Affairs Those public information, command information, and community relations activities directed toward both the external and internal publics with interest in the Department of Defense. Also called PA. See also command information; community relations; public information. and Communications, Friendly's Media Contact: Maura Tobias, 413-543-2400 Loews Cineplex Entertainment "We are very interested in technologies that provide an enhancement to our patrons' experience in our theatres. Radio Frequency capabilities will undoubtedly help us move customers through their ticket and concessions purchases much faster so they can enjoy the show even more." -- Syrinthia Studer, Vice-President, Marketing Partnerships and Promotions, Loews Cineplex Entertainment Media Contact: Diane Blackman, D.L. Blackman & Co., 212-989-3646 Ritz Camera "Radio Frequency has long been associated with quick pay venues. We believe the new MasterCard PayPass has great potential in more traditional retail stores, too, in terms of security, efficiency, and enhancing the overall customer experience, and are pleased to be participating with MasterCard International on this exciting program." -- Matthew Edmonds, Director of Credit, Ritz Camera, 301-419-3209, ext. 104 TECHNOLOGY VENDORS On Track Innovations (OTI) "OTI is pleased to work with MasterCard International as the premier solution provider for the Orlando pilot, as well as their initial employee tests. OTI is providing MasterCard and its partners a broad range of products, including the card technology, card reader solutions, drive thru solutions and personalization systems." --Ohad Bashan, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , OTI America Inc., 408-252-0333 ViVOtech (adapter A device that allows one system to connect to and work with another. An adapter is often a simple circuit that converts one set of signals to another; however, the term often refers to devices which are more accurately called "controllers. provider) "ViVOtech's innovative radio frequency terminals are specifically designed to fit existing POS systems so merchants can rapidly and cost-effectively deploy MasterCard PayPass." -- Jorge Fernandes Jorge Fernandes also known as Silas (born September 1, 1976 in Lisbon) is a Portuguese football (soccer) midfielder. He currently plays for C.F. Os Belenenses. , CEO, ViVOtech Media Contact: Carmella Lyman, 530-546-5488 or 775-233-8300 MasterCard(R) PayPass(TM) Fact Sheet - Location: Orlando, Florida (U.S. Region) - Time Frame: January-June 2003 - Issuers: Chase, Citibank, MBNA - Current Merchants: Boater's World, Chevron, City of Orlando Parking, Friendly's, Loews Universal Cineplex, Ritz Camera and Wolf Camera Additional retailers and quick serve restaurants will be added throughout the trial. - Technology Vendor Partners: - Chip Developer/Manufacturers: Infineon/SC2, OTI Inc./Samsung, Philips Semiconductor/Oberthur - Card Manufacturers: CPI Card Group, Oberthur USA - Card Personalization Bureaux: First Data Corp, MBNA - POS Providers(a): C-SAM, OTI Inc., Panasonic, Stella, VeriFone, ViVOtech, 3 Form Design - Testing & Compliance: Cadimes, Caradas, Consult Hyperion - Merchant Installation: Edgar Dunn, OTI Inc. (a) Specially made readers have been created for rapid implementation in a trial environment. It is expected that in a roll-out environment merchants will have the choice to deploy fully integrated terminals (including readers) or plug-in readers. - Contactless Chip Card Specifications: - ISO/IEC ISO/IEC International Organization for Standardization/International Electrotechnical Commission (ITU-T M 3000) 14443 A&B - MasterCard Proximity Chip Payment - Online Profile - Additional Information: - MasterCard is combining its proven acceptance network with an interoperable, card based industry standard (ISO/IEC 14443) for communicating payment data across a wireless/contactless interface to create its proximity payments solution, PayPass. PayPass is MasterCard's global program name and has been approved in 13 of our key markets. - In North America, where the majority of transactions are authorized on-line, the payment application data is based on the magnetic stripe information. The card/terminal interaction is based the MasterCard Proximity Chip - Online Profile, which is a subset of EMV/ISO7816 commands. - MasterCard is also developing in parallel a specification that allows the M/Chip payment application to be handled across a contactless/wireless interface using the same transport protocol and application command set for the Online Profile described above. This will facilitate PayPass payment in more offline environments. Prototypes of this solution have been demonstrated publicly over the last 18 months. - Specifications are available now under license for the Online Profile. Please contact Elizabeth Neligan for additional information at (914) 249-4874. MasterCard will be releasing the specification for contactless M/Chip transactions in the near future. |
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