MasterCard PayPassLaunches in Europe

MasterCard PayPassLaunches in Europe

Starbucks and Burger King among first retailers to accept MasterCard PayPass in Turkey

Waterloo, Belgium, July 20, 2006–MasterCard Worldwide today announced the launch of the first European MasterCard® PayPass™ credit programme, in partnership with Garanti Bank in Turkey. Beginning 20 July, Garanti bank will reissue 25,000 “Tap & Go™” cards, which use MasterCard PayPass technology, to its Bonus cardholders. Starbucks, Burger King and Cinebonus, Turkey’s largest cinema chain, have already signed up to accept MasterCard PayPass in Turkey.

MasterCard PayPass offers consumers a convenient alternative to cash that allows for small ticket purchases to be completed quickly, securely and easily. Consumers no longer need to fumble for cash and coins, swipe a card, or sign a receipt for any PayPass purchase under US$25 (purchases over US$25 will require a signature and a receipt). Using MasterCard PayPass, Turkish consumers simply tap their new Garanti Bank MasterCard card on the PayPass reader at participating merchants and they are on their way.

Commenting on the launch event in Istanbul today, Javier Perez, President, MasterCard Europe, said, “Contactless payments have a major role to play in the replacement of cash in European commerce and our MasterCard PayPass launch with Garanti Bank is a critical step forward in bringing a fast, convenient and secure alternative to cash to the European market.”

“Following the successful rollout of MasterCard PayPass in the US, in traditionally cash-only locations, we are delighted to have Starbucks, Burger King and Cinebonus on board in Turkey. 2006 is the year in which MasterCard will bring the contactless payments revolution to Europe.”

Perez continued: “For issuers and merchants alike, contactless payment technology is revolutionary because it has the power to change consumer behaviour.” According to internal MasterCard data, the average PayPass transaction, credit or debit, is approximately US$20. Consumers also use their payment cards more frequently once those cards become PayPass-enabled, approximately 18% more often on average. Roughly 75% of all PayPass transactions were for purchases below $25 and approximately 45% of all PayPass transactions were for purchases below $10.

Ozlem Imece, General Manager South East Europe, MasterCard, said: “Turkish banks have always been ahead of the curve when it comes to card payment products. Working with MasterCard, they were the first in Europe to launch virtual cards, multi-partnered co-branded cards and distribution cards. Now, they will be the first to launch MasterCard PayPass in Europe. In recognition of Garanti Bank’s work on this launch, we are delighted to present them with a MasterCard PayPass Leadership Award–the first in Europe. We look forward to the successful rollout of MasterCard PayPass in Turkey.”

Mehmet Sezgin, General Manager, Garanti Payment Systems, said: “We are excited to be working with MasterCard on this ground-breaking MasterCard PayPass programme. Garanti Bank is committed to staying at the forefront of payments innovation in order to provide the best possible service for our customers. This launch marks a major milestone in opening up the European market to contactless payments.”

There are a number of PayPass-related programmes currently underway in ten countries around the world. PayPass rollouts and trials have been announced in the United States, Canada, United Kingdom, Japan, Korea, Lebanon, Malaysia, Australia, Taiwan, and the Philippines, with more programmes and rollouts anticipated throughout 2006.

As of Q2 2006, there are nearly 10 million PayPass cards and devices in the market and approximately 32,000 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 as well, and PayPass is now accepted in many Major League Baseball and National Football League stadiums as well as at numerous golf events.

Earlier this year, MasterCard received two 2006 Breakthrough Awards from Card Technology magazine at the CardTech/SecurTech industry conference. MasterCard was honored with the “Most Significant Implementation” award for PayPass, while Art Kranzley, Executive Vice President, Advanced Payments Solutions, was named “Visionary of the Year.” Additionally, in recognition of its success in leading the contactless payment market with its innovative PayPass programme, MasterCard was also awarded Frost & Sullivan’s “2006 Market Penetration Leadership Award.”

For more information about MasterCard PayPass, visit http://www.mastercard.com/paypass.

About MasterCard Worldwide

MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes close to 14 billion payments each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard Worldwide serves consumers and businesses in more than 210 countries and territories. For more information go to http://www.mastercardworldwide.com.

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