New MasterCard PayPass Utilizes Contactless Card Payment Technology

Business Wire, Dec 12, 2002

--Ohad Bashan, President & CEO, OTI America Inc., 408-252-0333

ViVOtech (adapter provider)

"ViVOtech's innovative radio frequency terminals are specifically designed to fit existing POS systems so merchants can rapidly and cost-effectively deploy MasterCard PayPass."

-- Jorge Fernandes, CEO, ViVOtech

Media Contact: Carmella Lyman, 530-546-5488 or 775-233-8300

MasterCard(R) PayPass(TM) Fact Sheet

- Location:

Orlando, Florida (U.S. Region)

- Time Frame:

January-June 2003

- Issuers:

Chase, Citibank, MBNA

- Current Merchants:

Boater's World, Chevron, City of Orlando Parking, Friendly's,

Loews Universal Cineplex, Ritz Camera and Wolf Camera

Additional retailers and quick serve restaurants will be added

throughout the trial.

- Technology Vendor Partners:

- Chip Developer/Manufacturers: Infineon/SC2, OTI

Inc./Samsung, Philips Semiconductor/Oberthur

- Card Manufacturers: CPI Card Group, Oberthur USA

- Card Personalization Bureaux: First Data Corp, MBNA

- POS Providers(a): C-SAM, OTI Inc., Panasonic, Stella,

VeriFone, ViVOtech, 3 Form Design

- Testing & Compliance: Cadimes, Caradas, Consult Hyperion

- Merchant Installation: Edgar Dunn, OTI Inc.

(a) Specially made readers have been created for rapid

implementation in a trial environment. It is expected that

in a roll-out environment merchants will have the choice

to deploy fully integrated terminals (including readers)

or plug-in readers.

- Contactless Chip Card Specifications:

- ISO/IEC 14443 A&B

- MasterCard Proximity Chip Payment - Online Profile

- Additional Information:

- MasterCard is combining its proven acceptance network with

an interoperable, card based industry standard (ISO/IEC

14443) for communicating payment data across a

wireless/contactless interface to create its proximity

payments solution, PayPass. PayPass is MasterCard's global

program name and has been approved in 13 of our key

markets.

- In North America, where the majority of transactions are

authorized on-line, the payment application data is based

on the magnetic stripe information. The card/terminal

interaction is based the MasterCard Proximity Chip -

Online Profile, which is a subset of EMV/ISO7816 commands.

- MasterCard is also developing in parallel a specification

that allows the M/Chip payment application to be handled

across a contactless/wireless interface using the same

transport protocol and application command set for the

Online Profile described above. This will facilitate

PayPass payment in more offline environments. Prototypes

of this solution have been demonstrated publicly over the

last 18 months.

- Specifications are available now under license for the

Online Profile. Please contact Elizabeth Neligan for

additional information at (914) 249-4874. MasterCard will

be releasing the specification for contactless M/Chip

transactions in the near future.