MasterCard to deploy 410,000 NFC contactless payment terminals in Japan over next 3 years

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MasterCard plans to deploy a target of 410,000 NFC contactless enabled point of sale (POS) terminals for MasterCard PayPass in Japan over the next three years.

PayPass is an innovative contactless payment feature that provides consumers with a fast, secure and convenient alternative to cash for everyday purchases. Payments are made simply by tapping a contactless-enabled card or mobile device on a terminal.

MasterCard contactless payment, which is presently accepted at approximately 866,000 merchant locations in 51 countries, is offered by more than 200 issuers worldwide. More than 100 devices are currently certified for use with MasterCard’s contactless technology.

In February, MasterCard announced strong growth of contactless payments made on MasterCard-enabled cards across the Asia/Pacific, Middle East and Africa region in 2012, citing a 28% increase in merchant locations, reflecting a strong demand from consumers in the region for simple and secure ways to make everyday payments. The early adoption and penetration of contactless payments in Japan ahead of other countries saw transactions amounting to over 2 trillion yen in 2011, according to the Bank of Japan. Contactless payments continue to expand at a rapid rate, in part due to the increased use of NFC payments.

MasterCard contactless payments can be made at popular retailers including Macy’s, Walgreens and Toys R Us in the U.S.; Transport for London, Marks & Spencer and Carrefour in Europe; city taxis in Singapore and Taiwan; and Shin Kong Mitsukoshi, 7-Eleven and Starbucks in several locations across Asia.

Orient Corporation took the lead in introducing PayPass to Japan by installing PayPass terminals at IKSPIARI commercial complex in Urayasu, Chiba prefecture in April 2006. Orient Corporation began issuing PayPass-enabled cards at the same time.

MasterCard contactless payments are ideal for everyday spend. In Japan, signatures have not been required for MasterCard contactless purchases under 10,000 yen since October 2012, when the amount was raised from 2,500 yen for greater ease and convenience. The 410,000 MasterCard contactless terminals will be deployed by domestic card companies including Mitsubishi UFJ NICOS, Sumitomo Mitsui Card, UC Card and Orient Corporation. The terminals employ the global standards ISO/IEC 14443 Type A/B and are EMV compatible.

Robert Luton, division president of MasterCard Japan, said, “MasterCard’s contactless payment platform extends convenience of using contactless payments over a global payment network to Japanese consumers. In addition, international cardholders can easily use MasterCard contactless payment solutions for purchases in Japan without the need to fumble with foreign cash and coins. We look forward to providing more contactless payments opportunities for Japanese cardholders, inside and outside of Japan, through a wider range of MasterCard contactless-enabled cards and devices.”