Contactless Smart Cards, RFID, Payment, Transit and Security

MasterCard, WestJet to test in-flight contactless payments

Wednesday, October 26, 2011

MasterCard is teaming up with WestJet, a Calgary-based airline, to trial contactless PayPass payments for in-flight purchases, according to PaymentsSource.

Scheduled to begin next month, the pilot will allow passengers on one WestJet route to tap and pay for drinks, snacks, meals or other merchandise using a contactless MasterCard credit or debit card. Eventually, the system will support NFC-enabled mobile purchases as well.


Payments processing for the trial will be handled by GuestLogix, a Toronto-based company that provides debit and credit card processing for most of the world’s major airlines, according to PaymentsSource.

Today, card payments on aircraft are conducted offline without online card authorization, which poses a high risk for fraud. However, GuestLogix is currently working on a way to provide online authorization for in-flight payments, and hopes to roll out a system that can support NFC payments as early as next year.

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Identive Group announced tomPAY, an NFC-enabled sticker tag that can be affixed to existing mobile phones to enable contactless payments.

Based on Identive’s tom (tag on metal) smart inlay technology, tomPAY is manufactured using the same processes as an ISO PVC card. When placed on a phone, tomPAY enables contactless mobile payments in compliance with MasterCard PayPass specifications, as well as loyalty, transport ticketing and other m-commerce services.

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Denizbank, a private bank with 588 branches in Turkey, has joined Turkcell’s Cep-T Cuzdan platform, enabling its customers to make contactless payments with their NFC-enabled handsets.

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MasterCard’s PayPass contactless payment feature may soon be presented to the Azerbaijan market of cashless payments.

According to a recent MasterCard study, 75% of the local residents said they would like to use contactless payment cards in supermarkets and 60% to pay public transport fare. When asked which devices, in addition to a plastic card, it would be convenient to make payments, 86% of respondents said they would like to use their mobile phone.

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Chinese handset manufacturer ZTE has partnered with Turkcell, Turkey’s largest mobile operator, to offer a new SIM-based NFC mobile device for the Turkish market.

The Turkcell T11 handset (aka the ZTE Racer II) can be used to pay for both highway toll payments and items at the point of sale with a simple tap against a contactless reader.

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