MasterCard PayPass Extends Leadership Position in Europe with First Pilot in Italy

Consumers and retailers to benefit from time savings and reduced risks of cash handling.

Waterloo, Belgium,- MasterCard Worldwide today further extended its leadership in contactless payments in Europe with the announcement of the first MasterCard® PayPass™ pilot programme in Italy, in partnership with Poste Italiane – business unit Banco Posta.

By the end of 2007, Poste Italiane will launch a six to eight month pilot with its new cardholders, who will be offered a prepaid card with MasterCard PayPass technology: the PostePay Evolution MasterCard card. The prepaid card will be available for purchase and use at retailers in Milan and Rome in a variety of retail categories, including cinemas, fast food and chain restaurants, supermarkets and other shops.

Using MasterCard PayPass, consumers will be able to simply tap their new Poste Italiane MasterCard card on a PayPass reader to make a purchase at all participating retailers. This innovative and market-leading Tap & Go™ technology, which is being rolled out in many markets across Europe by MasterCard, allows small value purchases under €25 to be completed quickly, securely and easily, with no need for consumers to fumble for cash and coins, enter a PIN or sign a receipt. For added security, larger purchases may require a PIN or signature.

As experienced by other retailers across Europe merchants in Italy will benefit from a reduced need to handle cash, in addition to the significant time-saving benefits associated with MasterCard PayPass technology.

Marco Siracusano, Marketing Director of Poste Italiane – business unit Banco Posta said: “Our common challenge is to widen the use of contactless technology and to make consumers more aware of the concrete benefits of Tap & Go™. MasterCard is an important partner in our joint ‘war on cash’. Facilitating the use of electronic cards will contribute to the further growth and development of the Italian economy"

Cathleen Conforti, Senior Vice President of Global PayPass, MasterCard Worldwide, said: "Our intention to launch the first contactless payments pilot in Italy with Poste Italiane is another important landmark on our journey to replace cumbersome cash with the speed, convenience and security of MasterCard PayPass across Europe.

“Italy is an important market for MasterCard and we are pleased to be able to offer our cardholders a highly innovative payments solution that is already making consumers’ lives easier in other parts of Europe.”

Gaetano Carboni, Head of Key Accounts for MasterCard Europe, said: “MasterCard PayPass aims to provide consumers with a new and innovative alternative to cash that simplifies purchases for consumers and retailers. Italy is the European market with the highest percentage of cash transactions. Our partnership with Poste Italiane represents a significant opportunity to place a stake in the ground and lead the contactless payments sector in Italy, as we have done in markets across Europe.”

The new development follows the launch of several MasterCard PayPass programmes and pilots across Europe, beginning in June 2006 with the region’s first MasterCard PayPass credit programme, which was launched with Garanti Bank and major retailers in Turkey. Most recently, MasterCard announced the forthcoming launch of a major PayPass pilot in Spain with Caja Madrid and more than 200 retailers.

As of Q1 2007, there are more than 14 million MasterCard PayPass cards and devices in the market that are accepted at more than 51,000 merchant locations globally, including McDonald’s, Starbucks, 7 Eleven, CVS, Duane Reade, Sheetz and Regal Entertainment Group. Interest in PayPass has not been limited to retail establishments. The technology has proved popular in sports facilities and MasterCard PayPass is now accepted in many Major League Baseball and National Football League stadiums, as well as at numerous golf events.

For more information about MasterCard PayPass, visit www.mastercard.com/paypass.