MasterCard Drives Expansion of Contactless Payments in Asia/Pacific, Middle East and Africa
Strong growth of MasterCard PayPass™ in the region marked by a 28% increase in merchant locations
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New Zealand, February 07, 2013 – MasterCard Worldwide announced today record growth of its contactless payments technology, MasterCard®PayPass™, across the Asia/Pacific, Middle East and Africa (APMEA) region in 2012, citing a 28% (YoY) increase in merchant locations.
MasterCard's PayPass contactless payment network now boasts nearly 700,000 merchant locations in 51 countries as of Q4 2012. Growth data reflects a strong demand from consumers for fast and convenient alternative to cash for everyday purchases in region, including those in emerging markets like Vietnam, which last month launched contactless payments for the first time.
New Zealand, Australia, Taiwan, South Korea, Singapore, South Africa and United Arab Emirates were credited as key contributors to growth in the APMEA region, and hotbeds for innovation in contactless payments.
Strong growth in merchant locations was made possible through strategic collaborations, including those with Coles and Woolworths supermarkets in Australia, NTT DOCOMO in Japan, and E.Sun Bank in Taiwan. Merchants are also seeing real impact to their bottom line.
Early last year, MasterCard worked with E.Sun Bank, one of Taiwan's top tier issuers and a top chain hypermarket to roll out a new MasterCard PayPass co-branded card aimed at driving higher performance of their customer loyalty programme. In less than one year, E.Sun Bank had issued 600,000 cards. PayPass functionalities have helped increase customer loyalty, delivering 15% higher spend, 20% less cardholder attrition and 10% more frequent usage than the bank's average. 1
Use of PayPass continues to grow in New Zealand
In New Zealand savvy merchants are quickly realising both the existing, and potential future, benefits of PayPass, leading to growth in the number of PayPass enabled terminals in the market.
In order to enable New Zealand consumers to make use of these terminals, the country's leading card issuers including Air New Zealand, ASB, ANZ, BNZ, Kiwibank, Westpac and The Warehouse Financial Services have been issuing PayPass enabled MasterCard cards.
As a result, there are now a growing number of PayPass-enabled MasterCard cards in New Zealand and several thousand merchant terminals where PayPass can be used to pay including Bunnings, Kmart, The Warehouse, Resene, Repco, and BP, with many other retailers and service providers looking to roll-out PayPass terminals over the coming months.
MasterCard New Zealand Country Manager, Albert Naffah said: "PayPass in New Zealand is reaching a tipping point. With many of New Zealand's leading retailers installing and turning on their PayPass terminals, being able to 'tap-and-go' is becoming commonplace, which will really help drive adoption of this technology.
"Kiwis are typically early adopters of technology. As the option to 'tap-and-go' becomes more common place, consumers are fast realising that PayPass is a much more smart, secure and convenient way of paying.
'With cash payments continuing to decline, we truly believe that contactless is the best way to make and accept payments. PayPass is not only secure, with cardholders protected by MasterCard's Zero Liability policy 2, but this technology makes the payments process quicker and more convenient for consumers, while also allowing merchants to accept more payments at peak sales times, so all-in-all, it is a win-win for everyone."
Innovation in Contactless Payments to Drive Future Growth
In addition to exponential increases in adoption, innovation in contactless payments underpinned the growth of PayPass across the region in the last year will continue to be a driver in coming months. Highlights of contactless payments innovation in the last year included:
Data provided by E.Sun Bank, Taiwan
To read more about MasterCard's Zero Liability protection visit www.mastercard.com/nz/personal/en/zeroliability/index.html
About MasterCard Worldwide
MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology company. It operates the world's fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard's products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the conversation on The Heart of Commerce Blog and subscribe for the latest news.