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MasterCard & RBS WorldPay Introduce Contactless Payments to Boots UK
UK’s Leading Health and Beauty Retailer to Trial MasterCard PayPass
In the second half of 2009, 15 stores in London and six in Liverpool will allow customers to ‘Tap & Go™’ to pay for everyday purchases under £10 in less than a second1 with their MasterCard PayPass cards and other contactless payment cards.
Hany Fam, General Manager, UK & Ireland Markets, MasterCard, said:
“We're proud to be the first payments company to introduce contactless to a major high street retailer in the UK. Boots UK is an ideal environment in which to showcase the speed, convenience and security of PayPass. Over a million people in the UK already know that carrying a PayPass card means always having the exact change2 - without being weighed down by it.”
Roberto Tittarelli, General Manager, Europe Commerce Development, MasterCard, said:
“As part of MasterCard’s strategy of strengthening merchant relationships, we’re delighted to be working with one of the UK’s leading retailers to make consumers’ lives easier by allowing them to simply Tap & Go.”
Issuer research has shown that accepting MasterCard PayPass can provide immediate benefits to consumers on the shop floor, particularly during peak trade hours such as lunchtime and in busy transit locations. Contactless payments have been shown to reduce queuing times by 15-20% and decrease the average transaction time by up to 40%3.
In addition to direct benefits for consumers, accepting MasterCard PayPass can also allow retailers to benefit from greater throughput and higher transaction volumes, whilst reducing the costs of cash handling.
Ron Kalifa, Managing Director, RBS WorldPay, commented, “Having been the first in Europe to trial contactless technology, we have seen the advantages for both retailers and customers with this simple, speedy and convenient way to pay for low value purchases. We are delighted that Boots UK has agreed to trial this new payment technology.”
Boots UK’s implementation of the contactless payment system will be supported by a dedicated marketing campaign from MasterCard to raise awareness of the technology and encourage its use.
Recent PayPass milestones in the UK:
- In May 2009, MasterCard received the Frost & Sullivan Company of the Year Award for the global performance of PayPass. Recognised for its innovation and unparalleled excellence within the world contactless smart card payment market, the strength of MasterCard’s business development, competitive strategy, customer satisfaction and leadership earned the company this honour.
- In 2008, as result of the migration of the Discover UK card portfolio, Barclaycard issued over a million MasterCard PayPass-branded Barclaycard credit cards.
- In October 2008, MasterCard, RBS and Stagecoach announced a one year trial of MasterCard PayPass and Maestro® PayPass™ on around 200 buses in Merseyside. The rollout in the second quarter of 2009 will be the first ever use of contactless bankcard payments on public transport in the UK and the first significant extension of the Tap & Go way to pay outside London for members of the general public.
- In June 2008, MasterCard and RBS joined forces to introduce ‘Tap & Go’ MasterCard PayPass contactless payments in London’s iconic black cabs.
- In March 2008, MasterCard, MBNA and Manchester City Football Club announced the launch of Europe’s first pilot programme to issue season ticket holders with a reloadable MasterCard Prepaid with PayPass contactless card, which can be used both to gain access to the City of Manchester Stadium on match days and to purchase items inside and outside the ground.
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.
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 1Q09 there are nearly 55 million PayPass cards and devices in use at more than 146,000 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.
1By tap, we mean the time taken to read the information from the contactless chip, not the full physical action of pulling out the card, moving it through the air and getting it in reading range of the terminal
2Source: MasterCard Europe Full Year 2008 results press release (5.02.09) announcing Barclaycard has issued one million MasterCard PayPass-branded Barclaycard cards.
3Source: Chase Bank press release (31.07.06)