MasterCard Introduces OneSMART PayPass
03 November, 2004
category: Contactless, Financial
MasterCard International has released its OneSMART PayPass, an EMV-based smart card featuring the M/Chip that will “enable customers in regions where EMV smart cards predominate, such as Europe, to reap the benefits offered by contactless payments.” The MasterCard announcement came during the CARTES show in Paris this week.
Contactless Payments Get Smarter with MasterCard M/Chip
WATERLOO, Belgium & PARIS–MasterCard International has announced OneSMART PayPass(TM), which will combine a contact chip and a contactless interface to provide a robust and feature-rich product. OneSMART PayPass will be centered around MasterCard M/Chip(TM) 4, a highly flexible EMV-based smart card application for credit and debit cards.
Partnering with world leading card and terminal manufacturers, such as Ingenico, Oberthur and Sagem Monetel, MasterCard will be able to help its customers take advantage of the benefits offered by OneSMART PayPass. With the first cards and terminals now ready for testing, banks and merchants can trial OneSMART PayPass as an alternative to cash payments.
“OneSMART PayPass combines the power and security of MasterCard M/Chip, with the speed and convenience of contactless payments,” said Pascal Dufour, vice president and head of Chip Product Management, MasterCard International. “Contactless payments are most powerful in places where speed is of the essence – such as in quick-serve restaurants, petrol stations and tollways. Cardholders simply tap their PayPass-enabled card on the PayPass reader and are on their way.”
“Trials in the United States have shown us that MasterCard PayPass has the potential to replace cash with card payments. This represents a huge potential for banks and merchants, particularly as a significant proportion of cash payments are made in retail environments where convenience and speed of transaction are at a premium. OneSMART PayPass will now enable our customers in regions where EMV smart cards predominate, such as Europe, to reap the benefits offered by contactless payments,” added Dufour.
How MasterCard PayPass Works – OneSMART PayPass cards have a chip and an antenna embedded in their plastic. When a card is brought in close proximity to a PayPass-enabled reader, it uses radio frequency technology to transmit account details to the PayPass reader. PayPass is based on the global ISO/IEC 7816 and ISO/IEC 14443 radio frequency technology standards.
Once payment details have been captured by the terminal, they are processed through the MasterCard acceptance network in the same way as a contact chip payment. The transaction is authorized either online by the issuer host or offline by the card. The card’s on-chip risk management capabilities can also accomplish Card Authentication (CAM) offline. To further speed up a PayPass transaction, CVM requirements, such as signature or PIN, may be waived for low-risk, low-value purchases. With OneSMART PayPass, a consumer can now ‘tap and go’, making the transaction simpler and faster than cash.
PayPass has already demonstrated through trials that it helps merchants to:
– Speed customers through the checkout process;
– Increase average transaction amounts spent (as compared to cash);
– Provide a reliable, trusted payment method that works well in quick-pay environments;
– Attract new customers and keep them coming back.
Beyond its speed benefits, PayPass helps merchants lower their costs and improve productivity. As employees handle and process less cash, they can focus on providing an improved overall customer experience. Accepting PayPass-enabled transactions does not require expensive changes at a merchant’s point-of-sale. They can add a low-cost PayPass reader to an existing terminal or introduce an integrated terminal that transacts with a tap, dip or swipe of a card. Either way, merchants can leverage their investment in their current EMV acceptance infrastructure while benefiting from the additional speed that PayPass brings to check-out.
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 International manages a family of well-known, widely accepted payment card brands including MasterCard(R), Maestro(R) and Cirrus(R) and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless(R) advertising campaign is now seen in 97 countries and in 47 languages, giving the MasterCard brand a truly global reach and scope. For more information go to www.mastercardinternational.com.
