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 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 technology using MasterCard bank cards . 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 allows simple, quick and safe 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 trade of 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 the use of non-contact technology in Orlando and Florida for 9 months. 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 of the number of users throughout 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 customers with more ways of payment, issuers - increasing the loyalty of account holders to card programs. This technology can supplement 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 speeds up the process of cash service and ensures its higher efficiency. The first large enterprise, which began to use 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 contactless payment in the Russian Federation was held 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, the card with magnetic stripe and microchip is issued by Raiffeisenbank. It is given 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 a month.

Analogues in the world

Non-contact technologies exist in the Visa system. PayWare is an analogue of PayPass. What does it mean? Visa and JCB Co. Ltd. Signed an agreement to accept the development 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 from fraud.

But there is one big drawback - the lack of a developed infrastructure, the cost of which is so great that neither banks, nor commercial enterprises are in no hurry to invest in it. In the UK, for 3 years, only 10% of stores have installed terminals.

PayPass: how to use

Due to the presence of a special chip with contactless cards, you can make 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 using 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 contactless contact, then instead of the card, you can use a keychain with an RFID sticker, a smartphone with NFC, etc. You can pay for goods only at outlets with the PayWave Visa, PayPass logo. The terminal confirms the procedure for reading by an audible 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 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 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.

You can not make many operations from the mobile terminal. 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 large cities of Russia there are a lot of "contactless" points: supermarkets, cafes, restaurants, pharmacies, refuellings, 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

St. Petersburg Metro since January 2015 began to take 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.

Watch2Pay wrist watch can also be a payment tool - the 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. RF. Plastic watches in several designs (white, black, red, blue) have a 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 watch, you need to send SMS from them with the card number.

In the summer of 2014, you can use a smartphone with NFC 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. For this purpose, the terminals of the control were installed on the entrances to sports objects - 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.