MasterCard Brings Internationally Accepted OneSMART™ MasterCard® PayPass™ EMV Solution to Malaysia; More than 30 Merchant Chains Already Signed Up

Kuala Lumpur, 9 February 2006–MasterCard International today celebrated the launch of OneSMART™ MasterCard® PayPass™, the industry’s first internationally accepted, dual-interface contactless EMV payment solution, in Malaysia. PayPass combines both contact and contactless interfaces on one chip, enabling regions where EMV smart cards predominate, such as the Asia/Pacific, to reap the speed and convenience benefits offered by contactless payments.

Today’s launch marks a milestone for Malaysia, providing Malaysians with a fast and convenient way to pay for their small everyday purchases. PayPass allows cardholders to “tap & go” at merchant outlets around the world that are equipped with PayPass readers.

The launch was officiated by the Minister of Domestic Trade and Consumer Affairs, YB Datuk Mohd. Shafie bin Hj. Apdal. Foreign dignitaries were also present at the launch, and demonstrated the global interoperability of PayPass as they performed transactions with their respective local cards.

“Customers need to be confident of the security of electronic payments. In Malaysia, today’s credit card landscape is now one of the most secure in the world compared to two or three years ago when the country was synonymous with credit card fraud. This rapid improvement is due to the sustained hardwork of the retail industry, banks and payment brands like MasterCard. They have been the drivers of the migration to EMV chip thus providing an evermore secure payment environment for Malaysian consumers,” said YB Datuk Mohd. Shafie bin Hj. Apdal, Minister of Domestic Trade and Consumer Affairs, Malaysia.

Local Malaysian merchants accepting PayPass range from supermarkets (Carrefour Group, Econsave, Pasaraya Greenway) to transportation providers (KLIA Expres Rail Link, Airport Limo), coffee operators and snack bars (Starbucks Coffee, San Francisco Coffee, Häagen-Dazs, Old Town Kopitiam), apparel and footwear boutiques (P&Co Brand outlets, the Padini Corporation Sdn Bhd, Seed Corporation Sdn Bhd, Vincci Ladies Specialties) and departmental stores (Isetan, UO Superstore). Other well-known merchants include Ace Hardware, Berjaya Times Square Cosmo World theme park and IMAX theater, Farmasi Vitacare, MPH Bookstores and Tower Records.

For years, MasterCard has been the industry innovator in contactless payments. From consumer research and development efforts to conducting market trials and standardizing communications protocols for contactless payments, MasterCard has paved the way for the increasing demand and successful roll-out of PayPass globally. In January 2006, MasterCard was awarded Frost & Sullivan’s “2006 Market Penetration Leadership Award” in recognition of its success in leading the contactless payment market with its innovative PayPass program.

Shuan Ghaidan, group head product sales & delivery; Asia/Pacific, MasterCard International said, “We are excited about the launch of PayPass in Malaysia, a market which has played host to a number of technological firsts. MasterCard is committed to providing cardholders with innovative payment products, designed to further complement their lifestyle needs. Global interoperability is vital to the success of any payment program and cardholders can now enjoy the ease and convenience of using their PayPass cards anywhere in the world where PayPass is accepted.”

Approximately 25,000 international merchant locations accept PayPass. For instance, when visiting the United States, Malaysians will be able to use their PayPass cards at merchants such as McDonald’s, 7-Eleven stores, Ritz Camera Centers, Regal Entertainment Group theatres (Regal Cinemas, United Artists Theatres and Edwards Theatres) and more. Malaysians will also be able to use their PayPass cards at Wellcome supermarkets, HiLife convenience stores and IS Coffee outlets in Taiwan.

As demonstrated during the launch event, cardholders simply need to tap their PayPass MasterCard card on a specially-equipped terminal to transmit and complete a transaction. Payment is completed quickly, securely and easily, without having to swipe a card, fumble for cash and coins or sign a receipt for PayPass purchases under RM110.

PayPass provides more consumer control, since the card does not leave the hands of the consumer to be inserted into the terminal by the merchant. It also offers cardholders more secure payment transactions through triple DES cryptography, a security practice in the banking industry used to protect consumers against hacking and other attacks.

According to Jim Cheah, vice president and senior country manager, Malaysia and Brunei, MasterCard International, “We are pleased to have a number of banks and more than 30 merchant chains signing up to issue and accept PayPass cards in Malaysia. The overwhelming interest in PayPass testifies to the compelling benefits of the technology. PayPass provides cardholders with a more convenient and secure way to pay and we are pleased to be working with banks and merchants to provide cardholders with the flexibility, convenience and security they have come to expect when making everyday purchases with their MasterCard card.”

During the event, MasterCard also presented MBF Cards (M’sia) Sdn Bhd, RHB Bank Berhad and Southern Bank Berhad with a certificate of recognition for their support in the launch of PayPass in Malaysia.

Other PayPass pilots, programs and collaborations announced in Asia/Pacific include:

• Payment Solutions and MasterCard announced the pilot launch of PayPass in Thailand in December 2005;
• MasterCard unveiled a list of merchant outlets in Taiwan that will accept PayPass in November 2005;
• Pocket Card and Itochu Enex launched a PayPass pilot program in Japan in October 2005
• The Kaohsiung Government (KCG) transportation project for Southern Taiwan was announced in January 2005, which incorporates the world’s first PayPass Chip Combi Card;
• The Bank of Philippine Islands (BPI) launched a PayPass pilot program in January 2005;
• Orient Corporation and MasterCard announced a PayPass pilot program in Japan in September 2004

About OneSMART™ MasterCard® PayPass™

PayPass is a new “contactless” payment feature that provides consumers with a fast and convenient alternative to cash for their small everyday purchases. Consumers simply tap their PayPass-enabled card or device on a specially equipped merchant terminal, eliminating the need to fumble for cash and coins, hand their card over to a clerk or swipe the card. PayPass also provides better record keeping than cash. The new solution is ideal for quick payment environments where speed is essential, such as quick serve restaurants, gas stations, drug stores, supermarkets and movie theaters. For more information about PayPass, visit http://www.mastercard.com/paypass.

About MasterCard International

MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members’ credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard manages a family of well-known, widely accepted payment card brands including MasterCard®, Maestro® and Cirrus® and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless® advertising campaign is now seen in 105 countries and in 48 languages, giving the MasterCard brand a truly global reach and scope. For more information go to http://www.mastercardinternational.com.