DALLAS -- 7-Eleven Inc. said it will accept MasterCard PayPass, a new contactless payment option using radio frequency identification (RFID) technology. The company said it expects to rollout the program in its 5,300 U.S. locations by early 2006 and has installed RFID readers in 170 test-market 7-Eleven stores.
Also, American Express has begun issuing its contactless Blue from American Express with the ExpressPay feature in all 50 states. It said 7-Eleven is the latest national merchant partner to accept ExpressPay. The currently has ExpressPay-enabled [image-nocss] readers in 170 stores in a test market and plans a full rollout to its more than 5,300 U.S. stores by early 2006.
The announcements come on the heels of similar deals with Chase Bank USA NA, a division of JPMorgan Chase & Co., and Visa. So, now all of our 5,300 U.S. 7-Eleven stores are expected by yearend or early 2006 to accept new payment cards issued by Chase, Visa, MasterCard and American Express, said Margaret Chabris, a 7-Eleven spokesperson. An RFID reading device will be attached to existing payment card readers on store counters.
To complete a payment transaction, MasterCard PayPass cardholders tap their PayPass-enabled MasterCard cardor alternative devices, such as a cell phone or key fobinside the store at the specially equipped terminals using RFID technology. Visual and sound cues from the terminal indicate MasterCard PayPass has been read, processed and accepted through the acceptance network of MasterCard. Seconds after tapping the card, the transaction is authorized and confirmed. No signature is required for many purchases under $25, which makes it even easier to minimize time spent at the counter.
American Express ExpressPay is a new payment feature that consists of a secure computer chip powered by RFID technology. Designed for purchases at locations where speed and convenience are importantsuch as convenience stores, quick-serve restaurants, supermarkets, drug stores and gas stationsit is an easy-to-use alternative to cash. Users hold Blue with ExpressPay next to a special reader at checkout to make purchases. Payment is authorized in seconds and no signature is required. The computer chip enables end-to-end transaction security. Blue from American Express also has a magnetic strip and functions as a traditional credit card.
American Express has been testing ExpressPay since 2002. The pilots involved many thousands of consumers making more than a million transactions with ExpressPay at hundreds of merchants. Test results showed that, on average, ExpressPay transactions are 63% faster than using cash, it said. Market research with pilot participants also confirmed that consumers view convenience and simplicity of use as two of the major benefits. Important merchant benefits include reduced transaction time and increased spending relative to cash.
The ExpressPay feature will be available on the following products:
Blue from American Express Blue Cash from American Express Blue for Students Blue for Business credit cards Blue Cash for BusinessMembers help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.