Asian payment card leader, JCB, will join MasterCard and Visa using a common protocol for contactless payment transactions. The PayPass protocol, developed by MasterCard, supports ISO 14443 standard contactless technology. According to the announcement, “the use of a common communications protocol … will enable vendors to streamline product development, leading to reduced implementation costs and faster time to market for financial institutions and merchants … merchants will also have the assurance that a single point of sale terminal may support multiple payment brands.”
JCB and MasterCard Agree to Share Common Contactless Communications Protocol
TOKYO – (MARKET WIRE) – 03/14/2006 – JCB, the only Asian-based international card brand, and MasterCard International have reached an agreement to share a common contactless communications protocol.
The protocol is the MasterCard PayPass™ ISO/IEC 14443 Implementation Specification, which provides for a global standardized technology for contactless payment services. Visa International made an announcement to support the protocol in March 2005, and JCB`s adoption of the specification means that these major international card brands will be basing their contactless payment applications on the same communications protocol.
While contactless payment applications vary by brand, the common specification for communications protocol will allow POS terminal vendors to reduce the burden of system development, as well as reducing initial costs and lead time for most financial institutions and merchants because they do not have to purchase multiple POS terminals to support contactless card products. The common communication protocol ensures global interoperability for contactless payment products and as a result it is anticipated that the pace of deployment of contactless terminals will accelerate.
“We are pleased to work with MasterCard on this communication protocol. I am sure this agreement will contribute to simplifying the various operational procedures for our partner members and vendors,” said Akihiko Shigemori, senior vice president, advanced technologies, JCB Co., Ltd. “With this arrangement, JCB can accelerate the expansion of its contactless payment field in the international markets, while continuing to boost the QUICPay™ product in Japan, which is based on FeliCa® technology.”
JCB rolled out the “QUICPay™” contactless payment product in Japan in April 2005, a scheme supported by Sony`s FeliCa® chip specification, which is widely employed for contactless payment solutions such as public transportation fare systems and mobile phone applications. In recognition of the necessity of globally standardized contactless payment services for markets around the world, JCB plans to begin development of an international JCB brand contactless solution based on the common communication protocol this year.
* Felica® is a contactless smart card technology and registered trademark of Sony Corporation
* MasterCard™ and PayPass™ are registered trademarks of MasterCard International Inc.
JCB is an international credit card brand and the largest card issuer and acquirer in Japan. JCB launched its card business in Japan in 1961 and began expanding overseas in 1981. Its merchant network includes 13.16 million merchants and spans 190 countries and territories. JCB cards are now issued in 19 countries and territories, with 55.99 million cardmembers. As part of its international growth strategy, JCB has formed alliances with more than 350 leading banks and financial institutions globally to increase merchant coverage and cardmember base. JCB’s corporate philosophy of “Service from the heart,” a commitment to responsive and high-quality service, continues to guide it as it creates the future together with its customers, merchants and partners. For more information, please visit: www.jcb-global.com/english or www.jcbcorporate.com/english.
MasterCard Licenses Common Contactless Communications Protocol to JCB Co. Ltd.
Singapore, 14 March 2006 –MasterCard International and JCB Co. Ltd. today announced that they have reached an agreement to share the MasterCard™ PayPass™ ISO/IEC 14443 Implementation Specification as a common communications protocol for radio frequency-based contactless payments. Contactless payments allow cardholders to speed through checkout by paying with a simple tap, eliminating the need for customers to hand over their payment card to a merchant or fumble for cash and coins.
The agreement means that cards and terminals supporting MasterCard and JCB contactless payment applications will conform to the same communications protocol and undergo equivalent testing.
The use of a common communications protocol for conducting contactless payments will enable vendors to streamline product development and testing, leading to reduced implementation costs and faster time to market for financial institutions and merchants. With a common communications protocol in place, merchants will also have the assurance that a single point of sale terminal may support multiple payment brands from a communications perspective and will require less time for terminal programming and testing.
“Global interoperability is vital to the success of any payment program. Our agreement with JCB allows us to take a step further in establishing a globally interoperable communications standard for contactless payment solutions,” said Shuan Ghaidan, head of product sales & delivery, Asia/Pacific, MasterCard International. “The common contactless communications protocol specification based on international standards has already been trialed and market-proven by MasterCard.”
Contactless payments significantly increase convenience for consumers and are ideal for quick payment environments where speed is essential, such as quick service restaurants, gas stations, drug stores, supermarkets and movie theaters. Contactless payments also open up new opportunities for accepting card-based payments in unattended sales environments, such as vending machines and highway tolls.
For years, MasterCard has been the industry innovator in contactless payments. In line with accelerating the industry’s migration toward contactless payments, in March 2005, MasterCard licensed its communications protocol for RF-based contactless payments to Visa International. JCB’s agreement now adds to the development of contactless payments within the industry as it conforms to the same communications protocol.
Approximately 25,000 merchant locations around the world accept PayPass. PayPass pilots, programs and collaborations announced in Asia/Pacific include:
- MasterCard in collaboration with MBF Cards (M’sia) Sdn Bhd launched the world’s first MasterCard FIFA World Cup™ card which includes the OneSmart™ MasterCard PayPass application in February 2006;
- MasterCard brings internationally accepted OneSmart MasterCard PayPass EMV solution to Malaysia and signs on more than 30 merchant chains in February 2006;
- Payment Solutions and MasterCard announced the pilot launch of PayPass in Thailand in December 2005;
- MasterCard unveiled a list of merchant outlets in Taiwan that will accept PayPass in November 2005;
- Pocket Card and Itochu Enex announced that they would launch a PayPass pilot program in Japan in the first quarter of 2006
- The Kaohsiung Government (KCG) transportation project for Southern Taiwan was announced in January 2005, which incorporates the world’s first PayPass Chip Combi Card;
- The Bank of Philippine Islands (BPI) launched a PayPass pilot program in January 2005;
- Orient Corporation and MasterCard announced a PayPass pilot program in Japan in September 2004
About MasterCard International
MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members’ credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard manages a family of well-known, widely accepted payment card brands including MasterCard®, Maestro® and Cirrus® and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless® advertising campaign is now seen in 105 countries and in 48 languages, giving the MasterCard brand a truly global reach and scope. For more information, go to www.mastercardinternational.com.