MasterCard Launches 1st Contactless Card In China
MasterCard in collaboration with the Industrial and Commercial Bank of China (ICBC), announced the introduction of the 1st PayPass credit card and the 1st dual-interface chip card (EMV contact/PayPass contactless) in China.
The ICBC MasterCard Easy Life PayPass credit card offers consumers speed and added convenience of contactless payments as they go about their daily payments. Consumers simply need to tap their PayPass card on a specially-equipped POS terminal that utilises an RF chip in order to make payments. They no longer need to fumble for coins or cash, nor hand over their card to the sales clerks as it eliminates the need to swipe the card through readers.
Designed using globally interoperable standards (ISO/IEC14443), PayPass will work consistently around the world wherever it is accepted. Consumers in China benefit from the flexibility in using their cards at over 73,000 merchants worldwide as of Q3 2007, including new acceptance environments such as vending machines, taxis, toll booths and transit.
In addition to the award-winning PayPass contactless feature, the card is also enabled with an EMV chip, offering greater security to the consumer. EMV-compliant cards offer greater security as they have been developed to be tamper-resistant. Their built-in processors protect the information stored on the chip embedded in the card, which means that critical transactions like payments are more secure.
The inaugural PayPass card in China is expected to lead the trend for contactless payments in the booming credit card industry. In order to develop the acceptance environment for PayPass and EMV chip card in China, MasterCard collaborated with ICBC to deploy PayPass terminals in a number of merchant locations, including places of interest in Beijing such as the Lama Temple and some first-tier cinemas including Stellar International Cineplex and Espace France Cinema. Bicycle Rental, a popular bicycle rental chain in Beijing, will also be among merchants to accept the card. Cardholders can easily rent bicycles at more than 30 rental stores in the city and play their part in contributing to the traffic and environment of the Olympic host city. By deploying more than 10,000 EMV-compatible POS in the city, ICBC is committed to providing a first-rated acceptance environment for PayPass and chip cardholders from all over the world during the upcoming 2008 Beijing Olympic Games.
The PayPass credit card combines contact (ISO7816) and contactless (ISO14443) functionality, which includes a magstripe and an EMV-compliant card, in addition to the PayPass payment feature. The card programme is powered by the M/Chip 4 payment application, which is the latest generation of EMV payment applications, an application central to MasterCard's global smart card programme, OneSmart MasterCard.
"This is a milestone achievement in the Chinese payments industry, said Willie Fung, EVP & GM, Greater China and Korea, MasterCard. In December 2005, we collaborated with ICBC to launch China's 1st MasterCard chip card. Just over a year and a half later, we have joined hands once again to launch a first within China's payments industry. We are delighted to provide customers of ICBC with a payment card that brings flexibility, convenience and security, which they have come to expect when making everyday purchases with a credit card.
As the biggest commercial bank in China, ICBC is committed to innovation and providing new products and services to customers. A spokesperson from the Beijing branch of ICBC said, "We are delighted to team up with MasterCard, an innovative global leader in the payments industry to launch this card. With an enhanced and sophisticated payment card, consumers will be equipped to make fast and secure transactions everywhere MasterCard is accepted. We look forward to working closely with them to leverage their advanced payment technology to benefit our customers. For years, MasterCard has been the industry innovator in contactless payments. From consumer research and development efforts to conducting market trials and standardising communications protocols for contactless payments, MasterCard has paved the way for the increasing demand and successful roll-out of PayPass globally.
PayPass was globally launched in 2003 and has gained significant success in several APAC markets. Markets in APAC that have launched or initiated pilot programmes include Australia, Indonesia, Japan, Korea, Malaysia, the Philippines, Taiwan and Thailand. It speeds consumers through the checkout process at locations such as McDonald's (Lebanon and Mexico), Burger King (Turkey), 7-Eleven (Australia), Starbucks (Turkey and Malaysia), Petro-Canada (Canada) and in many other types of merchants including supermarkets, cinemas, gas stations, fast food and transit. As of Q3 2007, there are over 19 million PayPass cards and devices in use at over 73,000 merchants worldwide. It is an ideal payment feature for traditional, cash-only environments where speed is essential and can be easily embedded within payment cards or other devices such as a mobile phone, watch or keychain, all of which have been introduced in Taiwan.
With the introduction of the PayPass programme in China, MasterCard has once again shown its commitment in developing innovative payment solution programmes and technologies that benefit consumers, retailers and banks alike. |
