Dallas, NYC area McD units to accept MasterCard's PayPass

Nation's Restaurant News, August 30, 2004

OAK BROOK, ILL. -- McDonald's Corp. said it is expanding its partnership with MasterCard International by accepting the company's PayPass at a number of restaurants across the country.

PayPass is a "contactless" payment option that uses radio-frequency technology.

McDonald's outlets in Dallas and the New York metropolitan area will begin to accept PayPass later in 2004. More locations are expected to be added next year.

McDonald's patrons will be able to purchase items at participating stores without having to swipe the card through a card reader. Rather, PayPass cardholders are able to tap or wave the card on or near a terminal utilizing a radio frequency chip.

McDonald's said it would install Verifone Omni 7000 card-readers at units that accept PayPass.

McDonald's, which has more than 13,500 restaurants in the United States, accepts cashless payment options at more than a third of those units. The company said it plans to boost that number to 8,000 by year-end.

Jim Sappington, vice president of information technology for McDonald's U.S.A., said the quick-service chain "is always looking for new and innovative ways to use technology to improve customer service in our restaurants. The convenience of MasterCard PayPass will help our customers get their Big Macs, Premium Salads and Happy Meals even faster."

Fred P. Gore, senior vice president, North America Acceptance, MasterCard International, said: "People count on the convenience and utility of electronic payment options. MasterCard PayPass simplifies the customer experience."