Mastercard PayPass Press Release

MasterCard Canada Trials Mobile Payment

Trial using MasterCard PayPass(R) enables mobile phone purchases

TORONTO, May 27, 2008 /CNW/ - MasterCard Canada is testing Near Field Communications (NFC)-enabled phones with MasterCard PayPass capability on Bell Mobility's wireless network. The four-month trial is the next major step in bringing contactless payments via mobile phones to the Canadian market.

During the closed trial, PayPass enabled phones will be used to make secure purchases at any merchant location in Canada that accepts MasterCard PayPass. The technology enables a secure, fast transaction whenever the phone is "tapped" against a PayPass enabled point-of-sale payment terminal. MasterCard will be testing secure over-the-air (OTA) provisioning of payment card credentials and the security of transactions made using mobile phones.

"MasterCard is leading the transformation of mobile phones into secure contactless payment devices with numerous PayPass-enabled phone trials androllouts underway in regions around the world," said Nagesh Devata, Acceptance Development and New Products, MasterCard Canada. "One of the benefits of this technology is that little if anything must be done by the consumer to use their mobile phone as a payment device. We expect this initiative to have a significant impact on the way services are paid for at the point of sale inthe future."

"This is an important step in the progression of mobile commerce in Canada," said Almis Ledas, VP Corporate Development, Bell Mobility. "We will be using this trial to validate the technology's ability to meet Canadians' high expectations for security, simplicity and convenience and will share our findings through our existing partnership with the other wireless carriers."

How it Works

The PayPass payment application is stored inside the NFC-capable mobile phone's built-in "secure area". Users have individual control of the payment application in the phone's secure area. The PayPass payment application on these phones can also be password protected so that a lost or stolen handset cannot be used to make payments.

Whether consumers are using a PayPass enabled mobile phone or credit card, they enjoy the same protections from fraud with PayPass as they would with conventional MasterCard payments. PayPass is supported by robust, multi-level security protections including the encryption of PayPass RF transaction transmission and the multiple security protections of them MasterCard payment system.

According to a 2007 survey, nearly nine in ten Canadians (88%) are very interested in a payment method that would cut the time it takes to complete transactions.

About PayPass

PayPass continues to gain strong momentum worldwide. As of Q1 2008, there are more than 28 million MasterCard PayPass cards and devices in use at more than 109,000 merchants worldwide. There are a number of PayPass trials and rollouts currently underway in 24 countries, including Australia, Canada, China, the Czech Republic, France, Germany, Indonesia, Italy, Japan, Korea, Lebanon, Malaysia, Mexico, Mongolia, the Philippines, Poland, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the United Kingdom and the United States.

Canadians can currently use PayPass at Rabba Fine Foods, Cineplex Odeon, Tim Hortons Petro-Canada, Pioneer Petroleums, Loblaw Companies stores across Canada, and beginning later this year, McDonald's Restaurants will also be introducing PayPass.

(R) MasterCard PayPass is a registered trademark of MasterCard Worldwide

About MasterCard Worldwide

MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 18 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard(R), Maestro(R) and Cirrus(R), MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.

About the survey

The MasterCard survey was conducted online within Canada from December 11, 2007 through January 4, 2008 using GMI's consumer panels among 2027 adults (aged 18 and over). Figures for age, gender and geographicalregion were balanced in the outgoing survey sample taking into consideration response rates, completion rates and incidence rates to create a representative sample.