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MasterCard PayPass Adds Ease and Simplicity to More Transactions Worldwide Surpassing 50 Million-Issued Milestone
Financial Tool’s Success Demonstrates Value and Momentum of Cashless Payments
Purchase, N.Y., March 19, 2009 -
MasterCard Worldwide announced the issuance of the 50 millionth MasterCard® PayPassTM card or device, as of 4Q 2008, which in the last year more than doubles the number of cards and devices in circulation around the world. This significant PayPass momentum demonstrates not only the demand for simple solutions when it comes to payments, but also the continued secular shift toward electronic payments as validated by recent data1 that indicates 41 percent of consumers use cash less often today than they did two years ago.
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:
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).
Note: Cathleen Conforti, Global PayPass Product Manager, MasterCard Worldwide, discusses the PayPass Milestone in the attached video above.
About MasterCard PayPass Consumer Benchmark Survey
Conducted annually since 2006, the PayPass US Consumer Benchmark Survey tracks and assesses how consumers are reacting to the introduction of PayPass in order to gain insight into the consumer’s perception and experience of the product and its performance. The sample size consists of over 5,500 debit and credit PayPass cardholders from each of eight different financial institutions. The latest survey was conducted via phone interviews in late-2008.
About MasterCard PayPass
PayPass™ is a “contactless” payment feature that provides consumers with a fast and convenient alternative to cash for their everyday small purchases, and can be added to any MasterCard or Maestro account. Consumers simply tap their PayPass-enabled card or device (such as a payment tag) on a specially equipped merchant terminal, eliminating the need to fumble for cash and coins, hand their card over to a clerk, or swipe the card. Signatures are not required for PayPass purchases under $25, further speeding customers’ transactions. PayPass also provides better record-keeping than cash. PayPass is ideal for quick payment environments where speed is essential, such as quick serve restaurants, gas stations, drug stores, vending machines, movie theaters, transit, and sports arenas.
As of Q408 there are over 50 million PayPass cards and devices in use at over 141,000 merchant locations worldwide. There are a number of PayPass trials and rollouts currently underway in 28 countries, including Australia, Canada, China, the Czech Republic, France, Germany, Indonesia, Italy, Japan, Korea, Lebanon, Malaysia, Mexico, Mongolia, the Philippines, Poland, Romania, Russia, Serbia, Slovakia, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the United Kingdom and the United States.
12008 Study of Consumer Payment Preferences, BAI Research and Hitachi Consulting
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).
Note: Cathleen Conforti, Global PayPass Product Manager, MasterCard Worldwide, discusses the PayPass Milestone in the attached video above.
About MasterCard PayPass Consumer Benchmark Survey
Conducted annually since 2006, the PayPass US Consumer Benchmark Survey tracks and assesses how consumers are reacting to the introduction of PayPass in order to gain insight into the consumer’s perception and experience of the product and its performance. The sample size consists of over 5,500 debit and credit PayPass cardholders from each of eight different financial institutions. The latest survey was conducted via phone interviews in late-2008.
About MasterCard PayPass
PayPass™ is a “contactless” payment feature that provides consumers with a fast and convenient alternative to cash for their everyday small purchases, and can be added to any MasterCard or Maestro account. Consumers simply tap their PayPass-enabled card or device (such as a payment tag) on a specially equipped merchant terminal, eliminating the need to fumble for cash and coins, hand their card over to a clerk, or swipe the card. Signatures are not required for PayPass purchases under $25, further speeding customers’ transactions. PayPass also provides better record-keeping than cash. PayPass is ideal for quick payment environments where speed is essential, such as quick serve restaurants, gas stations, drug stores, vending machines, movie theaters, transit, and sports arenas.
As of Q408 there are over 50 million PayPass cards and devices in use at over 141,000 merchant locations worldwide. There are a number of PayPass trials and rollouts currently underway in 28 countries, including Australia, Canada, China, the Czech Republic, France, Germany, Indonesia, Italy, Japan, Korea, Lebanon, Malaysia, Mexico, Mongolia, the Philippines, Poland, Romania, Russia, Serbia, Slovakia, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the United Kingdom and the United States.
12008 Study of Consumer Payment Preferences, BAI Research and Hitachi Consulting
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes approximately 21 billion transactions each year, and provides industry-leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.