A Global Shift to Contactless Payments - 20 Million PayPass Cards

MasterCard Worldwide says it has issued 20m PayPass device globally. PayPass is now accepted at more than 80,000 merchants in 20 countries.

This latest milestone is consistent with the results of a Global Cash Usage Survey conducted in 2007 by KRC Research and commissioned by MasterCard Worldwide, designed to gauge global attitudes towards the use of cash versus alternate payment methods as well as to determine consumer interest in using new technologies, such as contactless payment technology.

The global survey, conducted in 13 countries showed that a growing majority of consumers worldwide believe that one day there will be a cashless society - globally consumers agree that they do not like to carry large amounts of cash and their behaviours, such as unwillingness to wait in line for more than ten minutes for small purchases, are driving growth in cashless payments.

MasterCard PayPass Making Inroads vs. Cash

According to the MasterCard Global Cash Usage Survey, consumers worldwide are using less cash these days than five years ago:
• A majority of respondents (56%) believe that one day the world will be a cashless society where credit and debit cards will replace cash and checks for payments.
• 75% of respondents believe that it is no longer necessary to have lots of cash on hand.
• Two-thirds of respondents (66%) use cash less often than five years ago to make purchases.
• Only one-fifth (21%) of consumers are willing to wait in line for more than 10-minutes to make a purchase of less than $25.

These survey results indicate that consumer preference is driving contactless growth and usage globally:
• About half of respondents (49%) are likely to use a contactless card if provided by their financial institution.
• 47% of those likely to use a contactless card cite convenience as the greatest benefit of the technology.
• Aside from convenience, global consumers like the additional security, speed and ease of contactless technology.
• Women are the most motivated to use contactless payments in order to avoid carrying cash

"This significant milestone for MasterCard exemplifies how we are changing the way that people pay," explains Art Kranzley, group executive, advanced payments, MasterCard Worldwide. "By leading a new wave of payment innovation that is displacing cash while creating a more efficient system of global commerce, MasterCard is making transactions faster, easier, and more secure for consumers, merchants and financial institutions that is also advancing commerce worldwide."

As of November 2007, there are over 20m PayPass cards and devices in the market and over 80,000 merchant locations around the world that accept PayPass, including McDonald's, 7 Eleven, CVS, Duane Reade, Sheetz and Regal Entertainment Group. Interest in PayPass has not been limited to retail establishments, proving popular in sports facilities and is gaining acceptance in the transportation sector. PayPass is now accepted in many Major League Baseball and National Football League stadiums as well as in many taxis and mass-transportation vehicles.

"PayPass was specifically designed to provide a convenient and easy alternative to cash payments," says Cathleen Conforti, group head, global PayPass, MasterCard Worldwide. "MasterCard is the leader in contactless technology at a time when consumers are using credit and debit cards for purchases more than ever before and as we announce such a significant issuance milestone, we also maintain our commitment to growing channels for acceptance and further technological developments such as the recent rollout for transit, taxi's and vending machines."

There are numerous PayPass-related programs currently underway in 20 countries around the world. PayPass rollouts and trials have been announced in the Australia, Canada, China, France, Indonesia, Italy, Japan, Korea, Lebanon, Malaysia, Mexico, the Philippines, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the UK and the US.