In collaboration with Nan Ren Hu Corporation, MasterCard will offer acceptance of PayPass at public highway service and rest areas on the island. This would include acceptance at restaurants, gift shops, and convenience stores at select service and rest areas.

Lee Chin-Po, CEO, Nan Ren Hu Corporation said, “We are delighted to collaborate with MasterCard to provide residents of Taiwan with an innovative payment method, which will reduce the time they spend when making payments at F&B outlets at rest stops. By accepting MasterCard PayPass, we will now be able to enhance our services and serve our customers better."

Evolution of the TaiwanMoney Card

In line with opening up new acceptance opportunities at “quick pay” environments, a recently released transaction report by the Transportation Bureau of Kaohsiung, demonstrated that Kaohsiung consumers were comfortable using multi-functional payment cards.

The transaction report, highlighting data up until the third quarter of 2006, showed that the TaiwanMoney Card, which was designed by MasterCard as a payments solution for Southern Taiwan’s transportation system, set a record of close to 150,000 transactions within the month of September.

According to the Kaohsiung City Government transaction report, TaiwanMoney cardholders were also able to easily pay for transportation usage:

• On public transport within seven southern counties in Southern Taiwan, comprising of 11 traffic transportation companies on 1,800 public buses and 385 traffic routes
• On six Kaohsiung City Chi-Jin Ferries, with 23 contactless terminals
• At more than 2,000 merchants across the island

The report also stated that the TaiwanMoney Card was used for a total of 276,323 transactions in the third quarter, of which 150,000 were transacted in the month of September. The total amount of TaiwanMoney Card transactions in the third quarter reached NT$1,368,654 (US$41,753).

In addition, the report highlighted that in the third quarter the number of transactions grew 50 times more than the second quarter, with the value of transactions increasing more than 30 times.

About MasterCard PayPass
PayPass is a new “contactless” payment feature that provides consumers with a fast and convenient alternative to cash for their small everyday purchases. Consumers simply tap their PayPass-enabled card or device 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. PayPass also provides better record keeping than cash. The new solution is ideal for quick payment environments where speed is essential, such as quick serve restaurants, gas stations, drug stores, supermarkets and movie theaters. For more information about PayPass, visit www.mastercard.com/PayPass.

Benefits of MasterCard PayPass
MasterCard PayPass offers consumers a convenient alternative to cash that allows for small ticket purchases to be completed quickly, securely and easily. Consumers no longer need to fumble for cash and coins, swipe a card, or sign a receipt for PayPass purchases under NT$ 700 (US$25). Research findings highlighted in a national Consumer Payments Survey conducted in 2005 by Ipsos are consistent with the Transportation Bureau of Kaohsiung transaction report, which shows that nearly half of respondents said they carry less cash today than they did five years ago. Additionally, 60% of respondents had only NT$ 650 (US$20) or less in cash on-hand. The results also showed consumers attitude towards the use of cash versus alternate payment methods, as well as, consumer interest in using new technologies, such as contactless payment programs.

Tina Chiang, senior vice president, Great China, MasterCard Worldwide said; "According to a study conducted with a PayPass issuer in the US, using the same three month time frame in 2005 and 2006, it showed that there was a 36% increase in usage per account; 45% increase in total transactions per account; 230% increase in usage at PayPass merchants; and 270% increase in the number of transactions at PayPass merchants for cardholders who tapped their card for purchases using PayPass. Compared to cash, PayPass saves 12-18 seconds every time you make a purchase. The survey data proves that PayPass benefits merchants, issuers and consumers.”

MasterCard PayPass Milestones
Globally There are a number of PayPass-related programs currently underway around the world. PayPass rollouts and trials have been announced in Taiwan, the United States, Korea, Japan, Canada, the Philippines, Australia, Thailand, Malaysia, Turkey, Lebanon, United Kingdom.

Just over a week ago, MasterCard was awarded the 2006 Frost & Sullivan Company of the Year Award for its performance in the contactless payment market segment. The annual award is given to a company that has demonstrated excellence within its industry. Several factors were assessed for the award, including MasterCard's business development, strategy and market leadership.

MasterCard PayPass also provides consumers with payment choices to replace cash for small purchases. In Korea, MasterCard collaborated with SK Telecom/Samsung Cards to provide consumers a retail payment solution that would allow them to make globally interoperable contactless payments via their mobile phones. Subsequently in Taiwan, MasterCard in conjunction with Chinatrust Commercial Bank launched the world's first watch equipped with MasterCard PayPass and with Taipei Fubon Bank launched a 3D soccer-themed key chain equipped with PayPass.

Beginning 11 July 2006 MasterCard commenced a six-month contactless payment trial in select New York City subway stations. The goal of the NYC Subway Trial is to evaluate the benefits of contactless payment technology in the busy NYC subway environment.

This year also saw MasterCard announce the launch of the first European PayPass credit programme, in collaboration with Garanti Bank in Turkey. As of 20 July, Garanti Bank reissued 25,000 “Tap & Go™” cards that would be accepted at Starbucks, Burger King and Cinebonus, Turkey's largest cinema chain in Turkey.

MasterCard PayPass Milestones in Taiwan
• MasterCard PayPass in collaboration with Nan Ren Hu Corporation will offer acceptance of PayPass at public highway service and rest areas on the island. This would include acceptance at restaurants, gift shops, and convenience stores at select service and rest areas, such as, Tai-Ann Service Station, Chin-Zua Station and Quan-Si service areas. (October 2006)

• MasterCard collaborated with Taipei Fubon Bank to launch the MasterCard Fubon PayPass Easy Co-branded Card. (October 2006)

• MasterCard and Cathay United Bank launched the MasterCard Cathay United Bank Easy Co-branded Card, based on the MasterCard PayPass contactless payment program. (July 2006)

• MasterCard in collaboration with Chinatrust Commercial Bank launched the world's first watch using MasterCard PayPass for contactless payments. (June 2006)

• In collaboration with Taipei Fubon Bank, MasterCard launched a 3D soccer-themed key chain equipped with PayPass. (May 2006)

• The Cathay United Bank IS Coffee Co-branded Card was launched, based on the PayPass program.(December 2005)

• MasterCard unveiled a list of merchant outlets in Taiwan that would be accepting MasterCard PayPass. The three retail chains across Taiwan included; Wellcome supermarkets, HiLife convenience stores, IS Coffee outlets(November 2005)

• The Shanghai Bank Wellcome PayPass Co-branded Card was launched (November 2005)

• MasterCard and Kaohsiung City Transportation Bureau, together with the consortium of industry players for the Kaohsiung City Government Transportation Project gathered to celebrate the TaiwanMoney Card at the Chi-Jing ferry terminal in Kaohsiung. As part of the preview, 2,500 TaiwanMoney commemorative cards were presented to officials and media for a trial run. (October 2005)

• MasterCard hosted a PayPass “Tap & Go™" consumer event at Core Pacific City and Cinemark (September 2005)