National Bank of Canada to trial contactless PayPass credit cards

Source: National Bank of Canada

National Bank (Toronto:NA.TO) is pleased to announce that it will integrate the contactless PayPass payment option into smart credit cards issued as part of a pilot project taking place in Kitchener-Waterloo, Ontario and Saint-Jerome, Quebec in 2008.

PayPass offers users a simpler and faster way to pay for low-value purchases, typically under $50, by tapping their card on a PayPass reader to complete transactions up to the limit established by the merchant. With this new payment system, merchants no longer need to handle small bills and coins, have clients sign a sales slip or swipe or insert a credit card into a terminal. National Bank MasterCard cards with PayPass will therefore reduce the time it takes to pay for purchases, a benefit for both clients and merchants alike.

"The contactless PayPass payment method makes it quicker and easier for clients to make minor purchases without having to worry about finding the exact change," explained Paolo Pizzuto, Vice-President - Electronic Payment Solutions at National Bank.

With this new feature, National Bank MasterCard cardholders will now have three payment options, depending on the technology offered by the merchant:
  • Contactless PayPass payment can be used as an alternative to cash for low-value purchases by simply tapping or brushing the credit card against a reader
  • Smart card technology, which enhances the security of transactions as clients must authorize the purchase by entering their personal identification number (PIN)
  • Merchants who do not yet offer PayPass or smart transactions will continue to swipe cards and ask clients to sign the sales slip, thus ensuring that cards can continue to be used wherever MasterCard is accepted.

PayPass was launched in Canada in 2004, and will become more and more popular in the years to come with merchants who need to offer a fast payment option to customers, such as fast food restaurants, pharmacies, service stations, vending machines, convenience stores and movie theatres.

As part of its ongoing drive to innovate, National Bank is making the most of this exciting opportunity to offer PayPass to its MasterCard cardholders and provide them with the most complete and flexible payment method available.

Comments: (0)