Comfortable technology to simplify the procedure of payments with plastic cards was successfully tested in the USA in 2002. Today PayPass is actively used in European Union, USA, Japan, developing countries of the Asian region and CIS countries.
On the Russian market PayPass was released in 2008, after which the following banks took up the issue of plastic supporting the technology: Citibank, Russian Standard, Petrocommerce, Moscow Industrial Bank, Alfa-Bank, Raiffeisenbank.
The PayPass technology is based on the principle of contactless payments based on the MasterCardWordwide product. The key benefits are the simplification and acceleration of the buying process. To conduct a transaction between the buyer and the cashier, it is enough to attach a card that supports PayPass technology to a special terminal and express consent to the transaction. There is no need to take the card out of your wallet, bag, pocket or other storage place. The technology is available for magnetic stripe and chip cards.
When paying for goods or services with PayPass technology, there is no need to enter a pin code and sign a check during the purchase process. The limit on the purchase amount in force in Russia should not exceed 1000 rubles. The technology is only gaining momentum in Russia against the backdrop of widespread use in Europe. A popular payment method provoked a new round of fraud in the segment of reading information from plastic cards of bank customers.
Thanks to PayPass technology, payment for inexpensive services or goods has become possible not only using plastic card, but also through a key fob, watch, telephone and other devices into which an electronic chip is embedded, tied to bank account client. Most interesting option The chip is offered in the form of an adhesive sticker, which is conveniently attached to any carrier. The convenience of using PayPass is to save time in the process of everyday payments in a cafe, at a gas station, in a store or public transport.
PayPass chip owners save about 30 hours of time per year thanks to a progressive simplified way of cashless payments.
If PayPass technology is used to pay online, the user will need to enter a special verification code. In POS-terminals that are not equipped with the option to recognize contactless chips, it will be possible to pay with a card in a standard way, using a magnetic stripe or a contact chip. Some experts tend to believe that PayPass technology has certain security problems. Their essence boils down to the fact that advanced in the use of information technology scammers can use readers to write off insignificant amounts from the card remotely without the need to confirm the payment.
Depending on choice commercial bank for cooperation, the status, format, as well as the parameters for using cards with contactless payment technology are significantly different. The difference can be traced not only optionally, but also in the cost of providing services. For example, Citibank is focused on issuing co-branded (joint projects of banks with other companies as part of special programs for a specific target audience) plastic with PayPass, while Alfa-Bank can also issue contactless payment technology.
When using PayPass terminals, users include an RFID chip in their technological arsenal. It should be noted that this element does not contain the required set of data, which is sufficient to pay for online purchases, such as a CVC2 code or username. Theoretically, an advanced attacker can read a one-time access code in order to perform one or more operations. But due to the technological complexity, the mentioned method of deception is unlikely to be widely used.
Advice from Sravni.ru: PayPass technology makes life easier modern man and saves time. But not too widespread on the territory of the Russian Federation makes a convenient algorithm for paying for purchases inaccessible in a number of areas. If you are in Moscow, St. Petersburg or another major regional center, the possibility of using PayPass is guaranteed not to be superfluous.
Due to the presence of a micro-chip in the card with the connected PayPass system, you can, without handing it over to the cashier, bring it to the payment terminal yourself and pay for any purchase up to 1000 rubles without confirmation by a pin code. But in case of losing the card, this is fraught with theft of a large amount from the account with several completed purchases. After all, when paying with a card, the cashier will not even be able to read the name of the owner and make sure (at the request of the document) that the card belongs to this person. It is for these reasons that cautious cardholders are willing to disable PayPass.
Almost all modern international MasterCard cards and Maestro. This system is called PayPass. Another Visa card transaction service offers exactly the same technology, but with a different name - Visa payWave. Another format international cards American Express is equipped with a similar technology called Express Pay.
All banks that issue cards equipped with the PayPass function guarantee the protection of the card for their owner.
It is possible to terminate the activity of the contactless payment system in personal account bank by opening the functionality of the card with PayPass connected.
If your bank does not provide such an opportunity in your personal account, you can contact the bank branch that issued you the "plastic" with a statement about blocking PayPass or changing the card to a new one without the possibility of conducting contactless payment her. A passport is required to apply.
In order to pay for the purchase, the cardholder Mastercard PayPass does not require you to enter a PIN or sign a receipt.Modern and forward-looking contactless payment technology makes shopping faster and easier.What is this system and how to get one"plastic", you will learn from the article.
Its essence is as follows. A chip is implanted into a regular payment card. It allows you to make a cashless payment by simply bringing the card to the payment terminal.
In Russia, in this way, you can make purchases for an amount not exceeding 1 thousand rubles. If the cost of paid goods/services is higher, PIN numbers or a personal signature will be required.
The microprocessor with PayPass functionality is also available as a sticker. It can be glued to any convenient device, such as a mobile phone or key fob.
Contactless payments can be used MasterCard holders and Maestro Pay Pass. Visa offers a similar technology - Visa payWave, and the American Express payment system - Express Pay.
Payment by card with this technology is much faster than the usual "plastic". The Mastercard PayPass owner does not hand it over to the cashier, always keeps it in his hands, and controls the process from beginning to end.
Funds from the account when using contactless payment cannot be debited 2 times. After making the first payment, the terminal emits a sound signal and turns off.
This technology is equipped with both credit and debit cards. As a rule, the tariffs for these banking products are similar to those set for the usual "plastic". On the site dedicated to PayPass, you can find a list banking institutions RF issuing such cards.
Among them are Alfa-Bank, Promsvyazbank, Russian Standard, Trust, Sberbank. PayPass as a convenient service is offered by a total of more than 30 financial organizations, their list is constantly expanding.
2. In Promsvyazbank, the following are available for registration:
3. Russian Standard Bank does not offer MasterCard debit cards with one-touch payment technology. You can choose from the following types of loans:
Near field communication- a system for exchanging information between devices that are at a distance of about 10 cm. It is similar in functionality to Bluetooth.
4. Unlike Russian Standard, in Bank Trust, choosing a card with Paypass technology is currently available only among debit products.
5. Sberbank of Russia offers the following cards from the MasterCard line:
The process of obtaining a card with PayPass is no different from obtaining a regular bank "plastic". The procedure for registration itself depends on the bank whose services you decide to use. In some, you can apply for a card on the Internet. In others, you will have to write this application in person, at a bank branch.
The production time does not exceed the time for ordinary plastic cards without a PayPass chip. For example, at Trust Bank, they are ready to issue a card in 5 minutes.
The card is issued as follows:
Holders of any active "Corn" card can receive "Corn" World MasterCard PayPass. Peculiarities:
Maintenance of personalized “Corn” is free. The cost of the order and delivery is adjusted individually (depending on the location of the settlement).
With a PayPass card, you can pay for services in places where payment terminals that support this functionality are installed. Most large stores, pharmacies, restaurants, cafes, cinemas accept payment using PayPass technology. The St. Petersburg Metro was the first transport company in Russia to launch the one-touch payment option.
On the website of the MasterCard payment system, you can find a complete list of companies that work with contactless payments. It needs:
The advantages of this technology include:
However, there are also disadvantages of this technology:
paypass is a technology contactless payments, which are equipped bank cards Mastercard company. Using PayPass technology, to pay for goods, it is enough just to attach a card with a special built-in microprocessor to the terminal. Watch an interesting video with a demonstration of contactless devices below!
PayPass technology is, simply put, a contactless interface for already existing maps. In fact, this is a microcircuit with an antenna that is built into an existing plastic card and, depending on where such a card is used, determines which payment application it interacts with. this map. The microprocessor with the MasterCard PayPass payment function can be inserted into wristwatches, as was done in Taiwan, into key fobs (USA, Spain, Turkey), Cell phones or in any items that a person is accustomed to carrying with him on a daily basis.
PayPass is a convenient alternative to cash that allows you to quickly, safely and easily make small daily purchases. Now, when making a purchase, consumers will not have to suffer with banknotes and coins, and will not need to swipe a card through a reader or sign checks. To carry out a transaction, the consumer simply needs to touch a specially equipped terminal with a card that supports PayPass technology.
Experts believe that PayPass is a very useful technology in an industry with low transaction costs and high transaction frequency, such as transportation. PayPass technology is expected to become widespread in the future, but there are opinions that it will need to strengthen transaction security, because there is a possibility of interception of data from the card using an alternative reader.
PayPass technology was first introduced by MasterCard in December 2002 and has since become widespread throughout the world. At the end of 2008, MasterCard released the 50 millionth PayPass contactless device. MasterCard claims that according to a 2008 survey, 77% of PayPass device users used them as their primary means of payment. As follows from financial report by MasterCard in 2010, PayPass technology has already been launched in Bulgaria, Slovakia, Romania, Turkey, and 300,000 such cards have already been activated in Italy. In total, in the middle of last year, about 80 million devices using this technology were produced in the world.
True Potential contactless payments in that they equally benefit all parties involved in the transaction: consumers, financial and commercial enterprises.
PayPass allows financial institutions to offer its customers a greater number of available payment methods, and for issuers to increase the total turnover on cards, as it attracts non-cash funds, increases the loyalty of account holders to card programs, and also allows equipping fast service enterprises to accept cards. PayPass technology can be used as an addition to any banking card programs: credit, debit, prepaid, co-branded, small business programs, etc.
MasterCard PayPass also makes the functioning of merchants more efficient, allowing them to improve the level of customer service. By reducing the number of cash transactions, PayPass speeds up the process cash service, increasing the efficiency of payments and providing competitive advantage. McDonald's was the first merchant to evaluate the potential of PayPass back in August 2004, followed by other American merchants.
Interest in products based on PayPass technology is not limited to retailers, as PayPass is actively used in most Major League Baseball and National Football League stadiums, as well as in a number of golf competitions. MasterCard and its partners use contactless payment technology for use in turnstile systems as well as vending machines equipped with PayPass.
According to LLC "Barclays Bank" first contactless payment using PayPass technology in Russia was carried out on September 9, 2008. This significant event took place in one of the Moscow restaurants. MasterCard Worldwide and KB Expobank LLC (Barclays Group) announced the completion of the first MasterCard® PayPass™ card transaction in the territory of Russian Federation. The historic MasterCard PayPass purchase was made as part of a demonstration of contactless payments at the Five Stars restaurant, which is part of the Expobank acquiring network.
Among the first about the release PayPass cards said in Russia the Moscow Industrial Bank. The project started in autumn 2010. It is planned to issue 15,000 cards for teachers and students of the Financial Academy under the Government of the Russian Federation. This card serves not only as a purse in the student cafeteria, but also replaces the student's record book and student card. For the future, the bank plans to issue similar cards in other universities of the country, bringing their number to 100,000 within a year.
Since March 1, 2011 Raiffeisenbank has been offering its customers world maps MasterCard Black Edition. They will support contactless payments PayPass, and are equipped with a magnetic stripe and a microchip. However, it should be taken into account that the card is issued free of charge to customers as part of the “Premium” service package. To do this, you need to have a minimum account balance of at least 2 million rubles.
However, you can get by with one million if you spend at least 25 thousand rubles on the card per month. For other customers who do not have the required balance on their account, monthly card maintenance will cost 3 thousand rubles. In the near future, the bank plans to issue credit cards with PayPass technology.
Watch an interesting story from a Raiffeisenbank representative about a payment card and a watch with which you can already pay for purchases:
A similar contactless payment technology called payWave exists in the Visa payment system.
Realizing the importance of the fact that the consumer should receive a uniform level of service in any point of sale card-accepting world, MasterCard, Visa and JCB Co. Ltd. entered into an agreement to adopt MasterCard PayPass ISO/IEC 14443 as the unified protocol for RF contactless payments. The agreement implies that cards and terminals supporting the contactless payment applications of these organizations must comply with a single protocol and undergo a single test, thus ensuring interoperability of all three brands.
To the benefits of cards that support technology contactless payments, in addition to fashion and novelty, versatility can be attributed primarily - contactless bank cards the usual format can be used not only in rare yet new devices, but also in the entire multi-million army of ATMs and payment terminals in all countries of the world. Unlike payments from the phone, payments using bank cards MasterCard payment systems are no longer exotic, and are now available almost everywhere.
The benefits include a longer service life of the cards, which, of course, wear out less during contactless payments.
But the most significant advantages are the convenience and speed of paying small amounts in transport, at gas stations, in cafes, supermarkets, etc.
New cards are well protected from scammers. In addition, with contactless payments, the card remains in your hands, which reduces the risk of unauthorized manipulations with it by service personnel.
But there are also problems, the most important of which is the lack of the necessary infrastructure for contactless payments. The creation of a network of new terminals requires considerable expenses, and neither banks, nor trade and transport enterprises are in a hurry to invest in them. And this is not only a Russian problem - in the UK it took 3 years for 10% of stores to install contactless payment terminals.
The world's first market testing of MasterCard contactless technology began in 2003, in 2005 the novelty began to actively penetrate the markets and gain popularity. History of MasterCard paypass in Russia began in 2008, when new way payment system was first demonstrated in our country, and its distribution gradually began - the first contactless cards appeared, merchants accepting this type of payment.
It became possible to purchase a one-touch ticket at Aeroexpress ticket offices and vending machines, contactless terminals appeared in Gastronome No. 1, GUM boutiques, etc.
The first solution for mobile contactless payment in Russia appeared - MasterCard and MTS launched a joint project. A convenient and fast payment method was actively conquering the market - in the same year, payment using contactless technology became possible in parking lots, gas stations, cafe chains, cinemas.
The contactless payment method is available at Moscow metro ticket machines, on several bus routes in the Moscow region, and at Aeroexpress turnstiles. Banks are starting to issue contactless MasterCard cards in new form factors: watches and stickers. In the same year, all leading Russian mobile operators offer solutions for mobile contactless payment. The first mobile wallet has been released, allowing you to remotely issue and download a card to your smartphone “over the air”.
The Summer Universiade in Kazan had a significant impact on the spread of cashless payments and contactless technologies. Especially for this large-scale event, a multi-service contactless MasterCard card was issued: in addition to payment functionality, this card was a pass to sports facilities, a public transport pass, an identity card for fans and volunteers, and a card in the loyalty program. With this card it was possible to buy tickets, "register" them in electronic system, and no longer use tickets on paper: at the stadium, you just had to touch the card to the reader at the entrance. At the same time, the first cards for fans of sports clubs appeared on MasterCard contactless bank cards - their functionality includes discounts on the purchase of goods in specialized club stores, and the ability to purchase and record season tickets or tickets for games, so that later you can go to the stadium "with one touch" .
This year brings new form factors in the form of key chains and wearable bracelets. By the way, more than 30 thousand guests of the Alfa Future People festival used the bracelets, which, with the support of MasterCard, became the first music festival in Russia, the entire territory of which was a cash-free zone.
MasterCard PayPass technology is becoming more and more widely used and gaining a new sound in social projects implemented with its use - a new generation of Muscovite social cards is issued on contactless MasterCard cards, and in Tatarstan the School Card project is being implemented - a new one has been created in it using MasterCard contactless technology school environment: from attendance checks to planning school meals. Multiservice cards and electronic bracelets with a contactless chip were issued to schoolchildren, who thus learn the basics of financial literacy.
A number of projects are being implemented to introduce MasterCard contactless technology in transport. large-scale project launched in St. Petersburg metro in January: one-touch fares can be paid at all stations directly at the turnstiles. Ground routes also appeared in Moscow and the northern capital - buses and trams are equipped with contactless readers.
MasterCard technology, due to its ease of use and the ability to integrate with a variety of wearable devices, is becoming increasingly famous and popular. By 2020, contactless payment support will become the MasterCard standard for European service and trade enterprises, consumers will be able to pay with contactless cards and devices at all POS terminals in Europe.
Almost every one of us has used infrared and Bluetooth technologies at least once, for example, transferring music from phone to phone at an institute lecture or, on a larger scale, deploying a data transmission network as part of some event taking place in a closed space using technology Bluetooth low energy. Many are already familiar with another near field communication technology - NFC (near field communication, near contactless communication). This is a wireless high-frequency communication technology that allows devices to exchange data at a very small distance of about 10 cm (compare with Bluetooth - up to 10 m). NFC is widely used in payments, access control systems, event pass wristbands, and more. Today, this technology is spreading in smartphones, TVs, and in the tourism industry.
NFC has played a key role in the development of contactless payments. The technology formed the basis of contactless payment. This is because NFC is reliable and easy to deploy. Contactless NFC chips store and exchange data with special readers, such as validators at turnstiles or POS terminals at store checkouts. Validators and terminals authorize the chip and exchange data at high speed. In addition, one of the NFC functions is to work in the bank card emulation mode.
MasterCard contactless payment technology is a special case of using NFC. See the infographic for details:
The most important feature that makes NFC an invaluable technology for use in mobile contactless transactions is the minimum connection establishment time, less than a second. That is, it is enough to bring the device with the NFC chip to the payment terminal and the payment will be made almost instantly.
The NFC chip can be installed in any device: from bank cards and mobile devices to watches and smartphones.
The advantages of MasterCard Mobile PayPass are obvious:
Through a combination of unique technologies, MasterCard paypass can make almost any item you like a means of payment.
Smartphones in modern society have long ceased to be a means of communication: now it is the Internet, books, music, work, study, maps and navigation, photos and mail, which are always with you. A person can forget a plastic card, wallet, glasses and keys, but he will check the presence of a phone in his pocket several times before leaving - after all, without it, it’s like without hands. Of course, the decision to make the smartphone also a means of payment was obvious. Moreover, NFC technology is extremely convenient for use in mobile devices and there are many smartphones and tablets with NFC "on board" in the world. How exactly your smartphone turns into a payment instrument can be found on the website.
Within literally last year MasterCard contactless technology has appeared in smartphones with support for a number of payment platforms.
▪ Apple Pay - a payment system integrated into Apple devices and introduced on September 9, 2014. Apple device owners can use credit and debit cards MasterCard directly through Apple Pay. In the store, to confirm the payment, it is enough to bring the iPhone to the contactless reader of the payment terminal and at the same time touch the Touch ID scanner with your finger (a step towards biometric identification). Security is provided by the EMV (Europay, MasterCard, Visa) standard and the use of the MDES (MasterCard Digital Enablement Service) platform.
▪ Samsung Pay. MasterCard cardholders can use their smartphones (flagship models such as the Samsung Galaxy S6) as a mobile payment device. The security and convenience of payments is ensured by the tokenization mechanism, the use of the MDES platform, as well as the EMV cryptographic algorithm.
▪ Android Pay announced and still preparing for release, but Android Pay and MasterCard have already been implemented paypass, based on the same tokenization mechanism. The real number of the user's card is not transmitted, so the consumer is provided with an additional level of security. The solution will soon be available for users of devices with Android KitKat and above.
▪ Wallet. A project related to MasterCard technology and mobile payments is being developed in Russia. In 2014, MasterCard and CardsMobile introduced new features of the Wallet mobile application. "Wallet" is available for download on more than 100 phone models due to cloud-based NFC technology.
Mobile app"Wallet" allows owners of compatible Android smartphones to issue, securely store and use MasterCard PayPass mobile bank cards directly in the application for payments in online and offline stores, transport cards to pay for public transport and electronic discount coupons. During the payment process, the user only needs to attach his smartphone with the Wallet application installed to the contactless payment terminal.
One of the key innovations is the launch of the "cloud" version of the Wallet, previously available only in a pre-installed form. Download a virtual contactless bank card to your phone today Tinkoff Bank, Russian Standard and Bank St. Petersburg can be "over the air" without visiting the bank, using the application "Wallet. Bank cards" from CardsMobile for Samsung, HTC, LG, Nexus, Sony, Huawei, OnePlus with Android 4.4 KitKat operating system and higher. The app can be downloaded for free from Google.Play.
Even now, watching the payment process in a hypermarket or at communication payment terminals, one can see that the transition to paperless money turnover In Russia, things are slow - many, even young people, prefer to carry banknotes and coins in their pockets, and shops periodically put up signs with the already slightly annoying announcement "We do not accept cards." So are we ready to meet the future that is already here?
According to one interesting study, yes, we are.
PRIME Research conducted its third annual Mobile Payments Study to uncover the changing consumer attitudes towards digital payments and mobile solutions. More than 19 million 100 thousand social media comments were analyzed in 2014 in sources such as Twitter, Facebook, Instagram, Weibo (China), Google+, YouTube and forums. The study covered consumers in 56 markets across the Americas, Europe (including Russia), Africa, Asia and the Pacific and identified more than 8 million conversations on these topics, including consumer commentary and news discussions.
The results of the study were announced in the spring of 2015. They show not only a significant increase in the number of discussions, but also a change in their tone and focus - there are more positive comments. Here are some of the findings from the study.
Clearly, users around the world are ripe for new payment options. In turn, at payment systems and technology, there is a future that can be looked into with bold optimism and confidence in being in demand.
Two abbreviations were used in the post, which hide not only technologies, but also guarantee the security of fast contactless payments. Let's talk about them briefly.
MDES (MasterCard Digital Enablement Service) is a platform that turns any device into a payment instrument: it allows you to use any device with an Internet connection to make and receive payments. When making payments, the platform uses tokens - one-time combinations of numbers that are used on mobile devices instead of 16-digit numbers on plastic cards. MDES confirms the transaction, matches the token with the plastic card number and sends this information to the issuing bank to authorize the payment on its part. In case of fraud or loss of the payment device, the connection between the token and the card in the MDES platform is broken.
EMV (Europay, MasterCard, Visa) – international standard for transactions with bank cards with a chip. This standard was developed by the joint efforts of bank card providers to increase the level of transaction security.
MasterCard has been a driver of innovation for businesses, banks and end users throughout its history. Contactless technology is a solution that is simultaneously convenient for all market participants, safe and easy to scale.
More than 5 million MasterCard PayPass cards have already been issued in Russia. More than 3 million trading platforms in 68 countries of the world accept payments using MasterCard PayPass technology (38 countries in Europe).
The future has arrived. All that was left was to touch it.
