PayPass - what is it? How to use MasterCard PayPass? Where do they accept PayPass?
Plastic cards have long been included in 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 cybercriminals will recognize CVV and, for example, pay for purchases in the online store. But there is an alternative solution - PayPass. What this is and how to use this tool, you will learn from this article.
Definition
PayPass is a contactless payment technologyby means of bank cards MasterCard. For payment it is enough to attach a card with a microprocessor to the terminal. This is the technology of PayPass. In fact, the card is a microchip with an antenna. In Taiwan, USA, Spain and Turkey, the MasterCard PayPass microprocessor is built into wrist watches, mobile phones and other items that a person carries with him daily.
Such a safe settlement system allowssimply, quickly and safely carry out small purchases. Now, during the payment, there is no need to suffer with bills, draw a card through the terminal, sign checks. The user just need to touch a special terminal. PayPass technology is very useful in the sphere of trade in goods with low cost and high transaction frequency. But for its broad development in the future, it is necessary to strengthen the security of operations.
History of development
In 2003, MasterCard tested 9 monthsThe use of non-contact technology in Orlando and Florida. At 60 different points, users paid 16 thousand cards. In parallel, the company worked out its compatibility with Nokia, JPMorgan, AT & T for the introduction of PayPass into mobile phones. In 2008, a 50-million device was produced. By this time, 77% of users used contactless technology as the main means of payment. By 2010, PayPass was launched in Bulgaria and Slovakia, at the hands of users there were 75 million cards that were accepted in 230 thousand terminals. According to the company's financial report for 2012, the volume of output increased by 50% due to the growth in the number of users across Europe. Today, PayPass cards are issued by Sberbank of Russia and Privat in Ukraine.
The potential of PayPass has not yet been revealed
What does it mean? Non-contact transactions are beneficial to all market participants: consumers, businesses and banks. Financial organizations provide their clients with a greater number of payment methods, issuers - increasing the loyalty of account holders to card programs. This technology can supplement any credit, debit, co-branding and other programs.
Trade organizations in whichTerminal PayPass, can serve their customers at a higher level. Reducing the number of transactions speeds up the process of cash service and ensures its higher efficiency. The first large enterprise, which began using MasterCard PayPass, is McDonald's. Soon interest to the new technology arose among football players and golf lovers. The contactless system is now used in turnstiles, vending machines, etc.
PayPass: where they accept and release in Russia
The first non-contact payment in the Russian Federation was conducted on 09.09.08 in the Moscow restaurant "Five stars". The first PayPass card was issued by the Industrial Bank in 2010. For students and teachers it is planned to issue a separate circulation of cards. They can be used not only for their intended purpose, but also as a student's record-book and a student's school.
Since 2011, a map with a magnetic stripe andmicrochip is issued by Raiffeisenbank. It is given free to customers as part of the "Premium" package. But for use you need to have a minimum balance of 2 million rubles. or 1 million, if you spend more than 25 thousand rubles a month. Customers who do not comply with this condition will pay 3000 rubles a month.
Analogues in the world
Non-contact technologies exist in the systemVisa. PayWare is an analogue of PayPass. What does it mean? Visa and JCB Co. Ltd. signed an agreement on the adoption of MasterCard as a single protocol, that is, all contactless technologies will be tested in the same way, ensuring compatibility of all brands.
The main advantages of contactless payments:
- modern method of calculation;
- 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 of payment;
- protection against fraud.
But there is one big drawback -The lack of a developed infrastructure, the cost of which is so great that neither banks nor trade enterprises are in a hurry to invest in it. In the UK, for 3 years, only 10% of stores have installed terminals.
PayPass: how to use
Thanks to the availability of a special chipcontactless cards can carry out small payments without authentication by the holder. Such operations are limited to 15 dollars in the US, 50 zł in Poland, 10 pounds in the UK, 1000 rubles in Russia. Operations on large amounts will have to be confirmed by signing a check or entering a PIN. But not all banks allow this. 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 a contactless chip?
After each transaction, the amount is written off frombank or personal account. Since the contactless contact, you can use a keychain with an RFID sticker, a smartphone with NFC, etc., instead of the card. You can pay for the goods only at points of sale with the PayWave Visa, PayPass logo. The terminal confirms the procedure for reading the audio signal. The user does not have to transfer the card into someone else's hands, enter a PIN-code, sign a check. It is enough to bring to the terminal a wallet with a card. Inside there should be no other plastic carriers with a chip. In Germany, they are also installed on identity cards.
Security
Non-contact transactions significantly reducetime. But in terms of security, users have a lot of questions. The RFID chip can partially clone the cards at a distance of up to 2 cm. This fact calls into question the full contactlessness of use.
PayPass prevents direct reading with RFID. The chip contains information about the number and expiration date of the card, and this is not enough to conduct online transactions. For each operation, a one-time code is generated. If you count it before the card is used, you can create its clone. The first application of the code by a duplicate will be approved, and the repeated application of the original will result in the blocking of both media. Given the low transaction limits, cloning of cards is unprofitable.
Perform many operations from the mobile terminalwill not work. In a territory with a large population, data on such operations must be received by an authorized center so that outsiders can not use the card unauthorized. Such systems analyze each generated code and check it for a duplicate. To completely protect the information, you need to screen the card, for example, wrap it in foil.
Where to use MasterCard Mobile PayPass technology
In Moscow, St. Petersburg and other majorcities of Russia "non-contact" points a lot: supermarkets, cafes, restaurants, pharmacies, refueling, beauty salons and other similar institutions. In addition, some organizations hold promotions for users of PayPass technology. For example, in the northern capital until the end of February, paying for the order in your favorite cafe with a smartphone, you can get coffee as a gift.
Last news
Petersburg Metro since January 2015began to accept contactless payment at all turnstiles. The amount equal to the fare is debited from the payment card. You can carry out the transaction only at the left side of the luggage turnstile. For payment, just bring the card to the yellow circle. When the transaction is complete, the blue color will light up on the turnstile.
A payment instrument may also actWatch2Pay is a product of AK BARS Bank. Only in Kazan, the number of pre-orders was more than a thousand. The retail price of the product is 3 thousand rubles. The Russian Federation. Plastic watches in several designs (white, black, red, blue) are of considerable thickness. In addition to the clock mechanism Seiko Epson, they also have a slot for the SIM-card. The kit includes a classic contactless card. To activate the clock, you need to send SMS from them with the card number.
In the summer of 2014, you can use a smartphone withNFC to pay for travel on public transport. To do this, the operator must obtain a special SIM-card with a pre-installed transport application. For payment, you need to bring the phone to the validator, which is located at the conductor. In the subway they are installed in turnstiles. In Kazan, the clock can be used as a pass to the IT park. To do this, at the entrances to the sports objects were installed monitoring terminals - infomats. In Tatarstan there are more than 150 of them.
Summary
Plastic cards have a worthy replacement -PayPass. What it is? Non-contact technology, which uses a device with a microcircuit and an antenna when making payments. To confirm payment, you do not need to enter a PIN code and sign checks. It is enough to touch the map to a special terminal. The limit on conducting operations is limited by the issuing bank, but in Russia it does not exceed 1 thousand rubles. You can use technology not only through the map. Not so long ago Watch2Pay watches appeared with a similar chip for 3 thousand rubles. In addition, smartphones with NFC can pay for travel on public transport. But for this you will have to purchase a SIM card with a special preinstalled application. The lack of developed infrastructure in small towns hinders the full development of technology.
