20 Million PayPass Devices Issued
MasterCard announced the issuance of the 20 millionth MasterCard 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, 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 MasterCard 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 10 minutes for small purchases, are driving growth in cashless payments.
PayPass Making Inroads Vs. Cash
According to the survey, consumers worldwide are using less cash these days than they were 5 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 cheques for payments
•75% of respondents believe that it is no longer necessary to have lots of cash in hand
•Two-thirds of respondents (66%) use cash less often than 5 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 US$25
These survey results indicate that consumer preference is driving PayPass growth and usage globally.
•About half of respondents (49%) are likely to use a contactless card if provided by their FI
•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,” said Art Kranzley, Group Executive, Advanced Payments, MasterCard. “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 FIs that are also advancing commerce worldwide.”
Whether in the form of a card, phone or keyfob, PayPass is proving to be a better way to accomplish even the smallest transactions at gas stations, movie theatres, concession stands, vending machines, quick-serve restaurants, taxi cabs, sports arenas and other emerging acceptance locations. With PayPass underway in 20 countries, it is providing consumers worldwide with a convenient alternative so that they no longer need to fumble for cash and coins, swipe a card or sign a receipt for any PayPass purchase of US$25 or below. Users can simply tap their PayPass-enabled card or device on the PayPass reader at one of over 80,000 participating merchants and they are on their way.
“PayPass was specifically designed to provide a convenient and easy alternative to cash payments,” said Cathleen Conforti, Group Head, Global PayPass, MasterCard. “MasterCard is one of the leaders 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 roll-out for transit, taxis and vending machines.”
As of November 2007, there are over 20 million 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. PayPass technology has proved 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.
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