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12 Canadian Issuers and 5 Acquirers Commit to Introduce MasterCard Chip Cards

Chip Cards to Deliver Enhanced Capacity, Capability, and Customization for Payments

Toronto, ON, December 21, 2005 - MasterCard Canada announced today that 12 of its card issuers will be working with MasterCard and five leading acquirers to introduce chip-enabled MasterCard payment cards in Canada by 2010. With 17 commitments to date on the migration to chip, MasterCard is leading the market in Canada.

MasterCard leads in the implementation of chip cards worldwide, with more than 248 million chip cards in active use globally, significantly more than any other payments organization. The explicit and proactive commitment to chip by MasterCard issuers and industry acquirers is unprecedented in the Canadian market, and brings significant momentum to the transition to chip cards in Canada.

The Canadian MasterCard issuers are ATB Financial; BMO Bank of Montreal; Canadian Tire Bank; Capital One Canada; Citibank Canada; Credit Union Electronic Transaction Services (CUETS); GE Money Canada; HSBC Bank Canada; MBNA Canada; National Bank of Canada; People’s Trust Company; and President’s Choice Bank. The acquirers are First Data Loan Company, Global Payments Inc., Moneris Solutions Corporation, Paymentech Canada and United Network Payment Solutions.

“The shift to chip is one of the most important changes to the Canadian payments industry since its inception,” said Kevin Stanton, President, MasterCard Canada. “Chip cards will bring unprecedented security, convenience, and value to consumers and businesses. It also means the implementation of industry-wide technical and commercial infrastructures. MasterCard is providing cutting-edge, customized hands-on support and extensive expertise to assist in a smooth transition, with the philosophy of ‘do it once and do it right.’”

A chip card contains a microchip akin to a small computer processor with memory, logic and a set of software applications. The capability and capacity of the chip is significantly greater and more powerful than magnetic stripe technology found on today’s cards. Chip cards have the capacity to store more information, and therefore the capability to implement sophisticated payment applications and customized programs. For example, businesses can design more flexible reward programs that can be activated instantaneously when a customer chooses to use a certain payments application. Chip cards also hold information in an encrypted form and require the use of a PIN (personal identification number), significantly enhancing security.

MasterCard combines a world of experience through the MasterCard Chip Centre of Excellence, together with deep local and global expertise and Canadian market knowledge. This combination delivers hands-on support, a complete range of chip products and platforms, and best-in-class migration services and expertise.

MasterCard’s chip solution suite, MasterCard OneSmart™, gives merchants, acquirers, and issuers everything they need to migrate to and manage chip-based programs. MasterCard’s OneSmart bundles together all components — card applications, card readers, system software, and business processes — necessary to leverage the business opportunity of chip. OneSmart packages include: customer acquisition; customer retention; card activation and usage; loyalty; innovation such as OneSmart PayPass™, which combines both contact and contactless interfaces on one chip; new delivery channels, and more.

Forward-looking Information

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 objectives will be achieved. Important factors that could cause actual results to differ materially from forward-looking information contained in this press release include: global political and economic conditions; MasterCard's ability to achieve its strategic objectives; the performance of MasterCard’s member financial institutions and the nature of MasterCard’s business relationships with these institutions; substantial and increasingly intense competition in the global payments industry; the success of MasterCard’s global advertising, sponsorship, promotion and merchant acceptance initiatives; the functionality and security of MasterCard’s transaction processing systems; MasterCard’s ability to adapt to industry trends with technological and payment program innovations; the resolution of certain legal proceedings and regulatory actions; changing market dynamics and the other risk factors disclosed in MasterCard Incorporated’s most recent Annual Report on Form 10-K. MasterCard disclaims any obligation to publicly update or revise any forward-looking information.

About MasterCard International

MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members' credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard, through its principal operating subsidiary, MasterCard International Incorporated, manages a family of well-known, widely accepted payment card brands including MasterCard®, Maestro® and Cirrus® and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless® advertising campaign is now seen in 105 countries and in 48 languages, giving the MasterCard brand a truly global reach and scope. For more information go to