Time-Strapped New York Tri-State Residents ''blink'' Their Way to Faster Purchases; Chase Cards with ''blink'' Transform Payment Experience for Two Million New York, New Jersey, Connecticut Residents, Merchants

Business Wire, Oct 27, 2005

NEW YORK -- Chase Bank U.S.A., N.A., a division of JPMorgan Chase & Co. (NYSE: JPM), announced today the rollout of its new Chase "contactless" credit cards with "blink" in the greater New York City tri-state area, including New Jersey and Connecticut.

Beginning this fall, Chase will start delivering the new cards with blink to more than two million cardmembers, including its portfolios for the Continental, Sony, United Airlines, Universal's King Kong and Universal cards. blink will increase the speed and convenience of credit card use at an initial base of approximately 1,800 merchant locations in 481 cities and 11 counties across New York, New Jersey and Connecticut.

In addition, Chase will also begin delivering cards with blink to approximately 900,000 Philadelphia-area cardmembers this week and add approximately 1,200 storefronts in New Jersey, Delaware and Pennsylvania to the roster of blink-enabled merchant locations.

The initial merchants in the New York City tri-state area will include participating 7-Eleven(R) stores, AMC Theatres(R), CVS/pharmacy, Duane Reade, Regal Entertainment Group, Sony Style stores and their participating locations. To support the effort, Chase will also launch an integrated marketing campaign.

To use Chase cards with blink, cardmembers simply hold their card near a point-of-sale reader at checkout, instead of swiping their card or handing it to a store employee. As cardmembers hold their Chase card with blink near the point-of-sale reader, the reader will quickly emit a tone and light up to signal payment confirmation.

"We believe these innovative cards with blink will provide merchants and cardmembers with the increased speed and convenience they want at the point-of-sale," said Carter Franke, chief marketing officer of Chase Card Services, the company's credit card division. "Tri-state area residents are famous for leading full lives and making the most of busy schedules, so we're confident they will take to contactless payment in a 'New York minute' and save time by using their Chase cards with blink often."

Working in conjunction with Visa U.S.A. and MasterCard International, Chase has identified stores where speed and convenience are important to consumers, and is introducing the new Chase card with blink with an impressive roster of participating New York merchants. The number of merchants accepting the Chase card with blink is expected to grow steadily. The new Chase cards with blink also feature the traditional magnetic stripe and can be used anywhere Visa and MasterCard are accepted.

"Duane Reade prides itself on being an innovator in our industry," said Gary Charboneau, senior vice president for Duane Reade. "As the largest drug store in New York City, we are excited to offer our customers a new approach to buying what they need faster. In support of Chase's launch of blink, all of our stores in the greater New York City area will be equipped this fall with contactless payment acceptance technology."

"Sony makes it a priority to provide our customers with ongoing opportunities to experience the newest in entertainment and technology, which is why we are pleased to accept Chase cards with blink at our Sony Style stores in the New York metro area," said Dennis Syracuse, senior vice president, Sony Style retail stores. "Contactless technology enables us to stay at the forefront of customer service, so our customers' store experience is as state-of-the-art as the products we offer."

"Because 7-Eleven is synonymous with convenience, we continually look for ways to improve the consumer's shopping experience at our stores," said Rick Updyke, vice president of business development for 7-Eleven, Inc. "The new Chase cards with blink enable a faster, easier transaction. Contactless payment complements 7-Eleven's strategy of providing consumers convenient, speedy service. As such, we are rolling out acceptance of these cards to our 5,300 U.S. 7-Eleven stores, including our recently opened locations in Manhattan."

Benefits for Cardmembers and Merchants

After taking part in a pilot program and evaluating the results of trials from around the world, Chase understands the value and benefits that cards with blink provide to both cardmembers and merchants. Trial results confirmed that consumers find the contactless technology to be simple, fast and convenient, and that consumers enjoyed the added security from retaining possession of their cards while paying.

The most significant time savings was realized in the drive-thru environment, where transaction time was reduced by as much as 20 seconds as compared to cash. Consumers also liked the convenience of not carrying cash for everyday purchases, meaning they no longer needed to fumble around for change and small bills, or be confined by the cash in their purses or wallets. In fact, 60 percent of respondents to a recent MasterCard survey said they use cash less often today than they did five years ago.

For merchants, blink transactions speed check-out times and allow consumers to spend less time waiting in lines. Research has shown that customers who use blink cards often spend more per transaction and are happier with their store experience. Chase cards with blink also provide a reliable, trusted payment method that works well in environments where speed is important.