February 9, 2006

MasterCard has brought out a new quick and easy method of payment called PayPass, and have appointed The Royal Bank of Scotland to test this new alternative to low value cash payments.

The trial is set for the summer of 2006 and will target low cash payments to a maximum of £15.00.

It is estimated that there are still 180 billion cash transactions a year in Europe, amounting to 80% of all personal payments.

The new PayPass method will enable consumers to make purchases much easier and faster. When a purchase is made the consumer just has to dip or tap the their card at the point of sale. This method does away with the need for a signature or PIN.

Alexander Labak, president of MasterCard Europe, said, “Low value transactions, where consumers traditionally rely on cash, are the next frontier for debit cards. By breaking cost barriers and creating a simple alternative to cash, we're creating a more attractive situation for banks, consumers and merchants."

Iain Clink, managing director, RBS Group Cards Business said, "We believe that the use of the MasterCard PayPass contactless technology provides an exciting opportunity to address the low value payment needs of both consumers and retailers."

Disclaimer:
All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.

You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.