Plastic cards have long been included in our lives. A small, convenient payment tool that is accepted almost anywhere in the world. It’s also very safe. You must always remember the pin code and ensure that the card is not lost, otherwise the attackers will recognize CVV and, for example, will pay for purchases in the online store. But there is an alternative solution - PayPass. What is it and how to use this tool, you will learn from this article.
Definition
PayPass is a contactless payment technology using MasterCard bank cards . For payment it is enough to attach a card with a microprocessor to the terminal. This is PayPass technology. In fact, the card is a chip with an antenna. In Taiwan, the USA, Spain and Turkey, the MasterCard PayPass microprocessor is built into watches, mobile phones and other items that a person carries with him daily.
Such a secure payment system allows you to simply, quickly and safely make small purchases. Now, during payment, there is no need to suffer with bills, draw a card through the terminal, sign checks. The user just needs to touch the special terminal. PayPass technology is very useful in the field of trade in goods with low cost and high transaction rate. But for its broad development in the future, it is necessary to strengthen the security of operations.
History of development
In 2003, MasterCard tested contactless technology for 9 months in Orlando and Florida. At 60 different points, users paid 16 thousand cards. In parallel, the company was working on its compatibility with Nokia, JPMorgan, AT&T for the introduction of PayPass in mobile phones. In 2008, the 50 millionth device was released. At this point, 77% of users used contactless technology as their primary means of payment. By 2010, PayPass was launched in Bulgaria and Slovakia; users had 75 million cards in their hands, which were accepted in 230 thousand terminals. According to the company's financial report for 2012, the volume of output increased by 50% due to an increase in the number of users throughout Europe. Today, PayPass cards are issued by Sberbank of Russia and Privat in Ukraine.
PayPass potential not yet revealed
What does it mean? Contactless transactions are beneficial to all market participants: consumers, merchants and banks. Financial institutions provide their customers with a larger number of payment methods; for issuers, an increase in the loyalty of account holders to card programs. This technology can complement any credit, debit, co-branding and other programs.
Trading organizations in which the PayPass terminal is installed can serve their customers at a higher level. Reducing the number of operations accelerates the process of cash services and ensures its higher efficiency. The first major enterprise to use MasterCard PayPass was McDonald's. Soon interest in new technology arose among football players and golf enthusiasts. The contactless system is now used in turnstiles, vending machines, etc.
PayPass: where they accept and release in Russia
The first contactless payment in the Russian Federation was made on 09.09.08 at the Five Stars restaurant in Moscow. The first PayPass card was issued by 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 its intended purpose, but also as an offset and a student card.
Since 2011, Raiffeisenbank has been issuing a card with a magnetic strip and microchip. It is issued free of charge 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 per month.
Analogs in the world
Contactless technologies exist in the Visa system. PayWare is an analogue of PayPass. What does it mean? Visa and JCB Co. Ltd. concluded an agreement on the adoption of MasterCard development as a single protocol, that is, all contactless technologies will be tested according to one scheme, 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 from scammers.
But there is one big drawback - the lack of developed infrastructure, the cost of which is so great that neither banks nor trading enterprises are in a hurry to invest in it. In the UK, over 3 years, only 10% of stores have installed terminals.
PayPass: how to use
Due to the presence of a special chip with contactless cards, it is possible to make small payments without authentication by the holder. Such operations are limited to 15 dollars in the United States, 50 zloty in Poland, 10 pounds in the UK, 1,000 rubles in Russia. Transactions with large amounts will have to be confirmed by signing a check or entering a PIN code. 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 debited from the bank or personal account. Since the connection is contactless, you can use a key chain with an RFID sticker, a smartphone with NFC, etc. instead of a card. You can pay for goods only at points of sale with the PayWave Visa, PayPass logo. The terminal confirms the reading procedure with an audio signal. The user does not have to transfer the card into the wrong hands, enter a PIN code, sign a check. It is enough to bring a wallet with a card to the terminal. There should not be other plastic media with a chip inside. In Germany, they are installed on identity cards.
Security
Contactless transactions significantly reduce time. But in terms of security, users have a lot of questions. The RFID chip can partially remotely clone cards up to 2 cm away. This fact casts doubt on the complete non-contact 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 for online transactions. A one-time code is generated for each operation. If you count it before using the card, you can create a clone of it. The first use of the code by the duplicate will be approved, and repeated use of the original will block both media. Given the low limits of operations, cloning cards is disadvantageous.
To make many operations from the mobile terminal will not work. In a territory with a large population, data on such operations must be sent to an authorized center so that outsiders cannot use the card unauthorized. Such systems analyze each generated code and check it for duplicate. To fully protect the information you need to shield the card, for example, wrap it in foil.
Where to use MasterCard Mobile PayPass technology
In Moscow, St. Petersburg and other large cities of Russia there are a lot of “contactless” points: supermarkets, cafes, restaurants, pharmacies, gas stations, beauty salons and other similar establishments. In addition, some organizations hold promotions for users of PayPass technology. For example, in the northern capital until the end of February, having paid for the order in your favorite cafe using your smartphone, you can get coffee as a gift.
Last news
The St. Petersburg metro from January 2015 began to accept contactless payments at all turnstiles. An amount equal to the fare is deducted from the payment card. A transaction can be made only at the left curbstone of the luggage turnstile. To pay, just bring the card to the yellow circle. Upon completion of the transaction, the turnstile will turn blue.
Watch2Pay - a product of AK BARS Bank, can also be a payment instrument. In Kazan alone, the number of pre-orders was more than a thousand. The retail price of the product is 3 thousand rubles. RF Plastic watches in several versions (white, black, red, blue) have a considerable thickness. In addition to the clock mechanism of Seiko Epson, they also have a SIM card slot. The kit includes a classic proximity card. To activate the clock, you need to send SMS with a card number from them.
In the summer of 2014, you can use a smartphone with NFC to pay for public transport. To do this, the operator needs to get a special SIM-card with a pre-installed transport application. To pay, 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 watch can be used as a pass to the IT park. To do this, at the entrances to sports facilities control terminals were installed - infomats. There are more than 150 of them in Tatarstan.
Summary
Plastic cards have a decent replacement - PayPass. What it is? Contactless technology that uses a device with a microcircuit and antenna when making payments. To confirm the payment, you do not need to enter a PIN code and sign checks. It is enough to touch the card to a special terminal. The limit on 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 card. Not so long ago, a Watch2Pay appeared with a similar chip for 3 thousand rubles. In addition, smartphones with NFC can pay for public transport. But for this you will have to purchase a SIM card with a special preinstalled application. The full development of technology is hindered by the lack of developed infrastructure in small towns.