PayPass - what is it? How to use MasterCard PayPass? Where is PayPass accepted?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Plastic cards have long been part of our lives. A small, convenient payment instrument that is accepted almost anywhere in the world. In addition, it is very safe. You must always remember the PIN code and make sure that the card is not lost, otherwise the attackers will find out the CVV and, for example, pay for purchases in an online store. But there is an alternative solution - PayPass. What is it and how to use this tool, you will learn from this article.

Definition

PayPass is a contactless payment technology using MasterCard bank cards. To pay, it is enough to attach a card with a microprocessor to the terminal. This is the PayPass technology. In fact, the card is a microcircuit with an antenna. In Taiwan, the United States, Spain and Turkey, the MasterCard PayPass microprocessor is embedded in watches, mobile phones and other items that a person carries with him on a daily basis.

This secure payment system makes small purchases easy, fast and secure. Now, during the payment, there is no need to suffer with banknotes, swipe the card through the terminal, sign checks. The user just needs to touch a special terminal. PayPass technology is very useful in the field of tradegoods with low cost and high transaction frequency. But for its wide development in the future, it is necessary to strengthen the security of operations.

Development history

In 2003, MasterCard tested contactless technology for 9 months in Orlando and Florida. At 60 different points, users paid with 16,000 cards. In parallel, the company worked on its compatibility with Nokia, JPMorgan, AT&T to implement PayPass in mobile phones. In 2008, the 50 millionth device was released. By this point, 77% of users were using contactless technology as their primary means of payment. By 2010, PayPass was launched in Bulgaria and Slovakia; users had 75 million cards in their hands, which were accepted in 230,000 terminals. According to the company's financial report for 2012, the volume of issuance increased by 50% due to the growth in the number of users throughout Europe. Today PayPass cards are issued by Sberbank of Russia and Privat in Ukraine.

PayPass's potential has yet to be revealed

What does this mean? Contactless transactions benefit all market participants: consumers, merchants and banks. Financial institutions provide their customers with a greater number of payment methods, issuers - an increase in the loy alty of account holders to card programs. This technology can complement any credit, debit, co-branded and other programs.

Merchant organizations that have a PayPass terminal installed can serve their customers onhigher level. Reducing the number of transactions speeds up the checkout process and makes it more efficient. The first major business to use MasterCard PayPass is McDonald's. Soon footballers and golfers became interested in the new technology. The contactless system is now used in turnstiles, vending machines, etc.

PayPass: where they accept and issue in Russia

The first contactless payment in the Russian Federation was made on September 9, 2008 in the Five Stars restaurant in Moscow. The first PayPass card was issued by the Industrial Bank in 2010. It is planned to issue a separate circulation of cards for students and teachers. They can be used not only for their intended purpose, but also as a record book and a student card.

Since 2011, a card with a magnetic stripe and a microchip has been issued by Raiffeisenbank. It is given to customers free of charge as part of the Premium package. But to use it, you need to have a minimum balance of 2 million rubles. or 1 million if you spend more than 25 thousand rubles per month. Clients who do not comply with this condition will pay 3,000 rubles a month.

Analogues in the world

Contactless technologies also exist in the Visa system. PayWare is an analogue of PayPass. What does it mean? Visa and JCB Co. Ltd. entered into an agreement to adopt the development of MasterCard as a single protocol, that is, all contactless technologies will be tested according to the same scheme, ensuring compatibility of all brands.

Key Benefitscontactless payments:

• modern settlement method;
• universal means of payment - such a bank card can be used not only on new devices, but also in numerous ATMs and terminals;
• long service life;
• high speed payment;
• protection against fraudsters.

But there is one big drawback - the lack of a developed infrastructure, the cost of which is so high that neither banks nor trade enterprises are in a hurry to invest in it. In the UK, only 10% of stores installed terminals in 3 years.

PayPass: how to use

Due to the presence of a special chip, contactless cards can make small payments without authentication by the holder. Such transactions are limited to 15 dollars in the US, 50 zlotys in Poland, 10 pounds in the UK, 1000 rubles - in Russia. Operations for large amounts will have to be confirmed by signing a check or entering a PIN code. But not all banks allow it. For example, in Germany and Austria, if the limit is exceeded, payment will have to be made by the usual contact method.

MasterCard issues debit and credit PayPass. How to use the contactless chip?

After each transaction, the amount is debited from a bank or personal account. Since the connection is contactless, instead of a card, you can use a key fob with an RFID sticker, a smartphone with NFC, etc. Goods can only be paid for at outlets with the PayWave Visa, PayPass logo. The terminal confirms the reading proceduresound signal. The user does not have to transfer the card to the wrong hands, enter a PIN code, or sign a check. It is enough to bring a wallet with a card to the terminal. There must be no other plastic media with a chip inside. In Germany, they are also installed on identity cards.

Safety

Contactless transactions significantly reduce time. But in terms of security, users have a lot of questions. The RFID chip can partially remotely clone cards at a distance of up to 2 cm. This fact calls into question the complete contactlessness of use.

PayPass prevents direct reading from RFID. The chip contains information about the number and expiration date of the card, and this is not enough for online transactions. A one-time code is generated for each operation. If you count it until the moment the card is used, then you can create its clone. The first application of the code by the duplicate will be approved, and repeated by the original will block both media. Given the low transaction limits, card cloning is not profitable.

It will not be possible to perform many operations from a mobile terminal. In areas with a large population, data on such transactions should be sent to an authorized center so that outsiders cannot use the card unauthorized. Such systems analyze each generated code and check it for a duplicate. To fully protect information, you need to shield the card, for example, wrap it in foil.

Where to use MasterCard Mobile PayPass technology

In Moscow, St. Petersburg and other major Russian citiesThere are many “contactless” points: supermarkets, cafes, restaurants, pharmacies, gas stations, beauty salons and other similar establishments. In addition, some organizations hold promotions for users of PayPass technology. For example, in the northern capital, by the end of February, paying for an order at your favorite cafe using your smartphone, you can get coffee as a gift.

Latest news

Since January 2015, the St. Petersburg Metro began accepting contactless payments at all turnstiles. An amount equal to the fare is debited from the payment card. The transaction can be carried out only at the left side of the baggage turnstile. To pay, just bring the card to the yellow circle. Upon completion of the transaction, the turnstile will turn blue.

Watch2Pay watch, a product of AK BARS bank, can also act as a means of payment. Only in Kazan, the number of pre-orders was more than a thousand. The retail price of the product is 3 thousand rubles. RF. Plastic clocks in several versions (white, black, red, blue) have a considerable thickness. In addition to the Seiko Epson clockwork, they also have a SIM card slot. The set includes a classic contactless card. To activate the watch, you need to send an SMS from it with the card number.

In the summer of 2014, you can use your smartphone with NFC to pay for public transport. To do this, you need to get a special SIM card from the operator with a pre-installed transport application. To pay, you need to bring the phone to the validator, which is located at the conductor. ATmetro they are installed in turnstiles. In Kazan, the watch can be used as a pass to the IT park. For this purpose, control terminals - infomats - were installed at the entrances to sports facilities. There are more than 150 of them in Tatarstan

CV

Plastic cards have a worthy replacement - PayPass. What it is? A contactless technology that uses a device with a microchip and an antenna to make payments. To confirm the payment, you do not need to enter a pin code and sign checks. It is enough to touch the card to a special terminal. The limit on transactions is limited by the issuing bank, but in Russia it does not exceed 1 thousand rubles. You can use the technology not only through the card. Not so long ago, Watch2Pay watches appeared with a similar chip for 3 thousand rubles. In addition, smartphones with NFC can pay for public transport. But for this you will have to purchase a SIM card with a special pre-installed application. The full development of technology is hampered by the lack of developed infrastructure in small towns.