SPOKANE, Wash. -- U.S. Bank, MasterCard Worldwide and Nokia have introduced a mobile payments pilot program in Spokane, Wash. Program participants received a new Nokia mobile phone equipped with MasterCard PayPass payment functionality, which allows them to pay for purchases with a tap of their mobile phone, instead of sliding a card through a magnetic stripe reader, handing it over to the cashier or finding cash and coins.
As of Nov. 27, 2007, more than 80,000 merchants accept MasterCard PayPass, including many in the Spokane area, such as Regal Cinemas, McDonalds, Jack in the Box and 7[image-nocss] -Eleven. Gonzaga University will also accept PayPass at various vending machines throughout its campus.
The phones integrate technology that, when used at a PayPass-enabled terminal or reader, transmits payment details wirelessly, eliminating the need to hand over a card for a merchant to swipe through a reader. After the terminal is tapped with the phone, the customer receives payment confirmation and is on his or her way. With this new way to pay, there is typically no need to sign for transactions under $25.
Program participants received Nokia 6131 NFC phones, which are equipped with the Near Field Communication (NFC) technology needed to communicate with MasterCard PayPass readers.
MasterCard PayPass payments made via mobile phone are processed using the same secure network through which other MasterCard transactions are processed. Consumers can protect their payment account information on their phone with a password. Should a customer misplace his or her phone, the payment feature can easily be disabled remotely with a call to U.S. Bank customer service.
The ability to initiate secure Over-The-Air (OTA) delivery of the MasterCard PayPass application to the mobile phone is necessary for both effective implementation of the mobile payments pilot program and eventual commercial rollout. Venyon is providing this secure OTA service which also allows for remote personalization and management of the payment feature.
MasterCard PayPass is ideal for traditional cash-heavy environments where speed is essential, and has led the way in bringing contactless technology to consumer categories such as quick-serve restaurants (QSRs), drug stores, gas stations, vending machines, convenience stores, sports arenas, movie theaters, transit systems and parking garages. As of November 2007 there are more than 20 million PayPass cards and devices issued globally, and PayPass is currently accepted globally at more than 80,000 merchant locations. PayPass is also accepted at numerous professional football and baseball stadiums.
In related news, fast feeders are using text messaging and other technological innovations to enhance ordering (see story in this issue of CSP Daily News). And to learn more about a Boulder, Colo., retailer in a pilot test that allows customers to use text messaging to pay for gasoline and goods, watch out for the February issue of CSP magazine orclick here for a link to CSPTV's video profile.
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