This story appears in the
April 2004 issue of
Entrepreneur.
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After a successful trial run in Orlando, Florida, MasterCard
will start incorporating its wireless radio frequency PayPass
feature into new cards across the nation. Consumers just wave their
cards in front of a PayPass-equipped reader. There's no swiping
and no signing for most purchases under $25. Cards can still be
used in the traditional way as a backup and for added security and
purchase protections.
Nokia has also teamed up with MasterCard for trials of mobile
phones with built-in PayPass capabilities. Placing this technology
onto phones could also be a boon to the fledgling area of wireless
advertising. Nokia has developed an SMS feature that allows
retailers to send advertisements to consumers. The company will
also test an MMS version for multimedia ads.
Expect it to take awhile for widespread acceptance, but
entrepreneurs may want to think ahead about accepting this new form
of payment. It's particularly suited for traditionally
cash-based settings like fast-food restaurants, gas stations,
drive-thrus and retail stores. It does require adding hardware to
your credit card acceptance setup. Prices will vary depending on
whether you're getting an entire system or just an add-on
adapter piece. Talk to your credit card services provider for
details, or visit www.paypass.com for more information.
