“The availability of contactless payments through the Lufthansa Miles & More Credit Card is a major milestone for contactless applications in Europe. Over time, we expect that contactless payments will become a must have feature that will increase the frequency of card usage and further improve customer retention,” said Steve Owen, vice president, sales and marketing, Identification, NXP. We expect that offering contactless payment in addition to other features – such as a frequent flyer or loyalty program – will help to boost card usage over time.”

NXP’s SmartMX IC is an integrated dual-interface EMV chip. For purchases of more than 25 Euros, card holders still need to sign or enter their PIN, while online purchases are verified through a MasterCard Secure Code known only to the card holder.

By Jan. 1, 2011 the SEPA (Single Euro Payments Area) Card Framework mandates EMV Chip and PIN as the supporting technology going forward. “The SEPA mandate continues to drive the EMV migration in Europe and enables an increasing interest in innovative multi-application card programs,” said Toni Merschen, MasterCard Worldwide.

The first MasterCard PayPass terminals in Germany have been installed at checkout counters in the Frankfurt and Munich Airports, and are expected to become more widely available through participating retailers throughout the country. The Lufthansa Miles & More Credit Cards are currently accepted in more than 27 million locations across the world.