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Story URL: http://www.silicon.com/financialservices/0,3800010322,39152311,00.htm

One million HSBC customers getting contactless cards
McDonalds and 7-Eleven in on the move...

By Dan Ilett

Published: Thursday 15 September 2005

The US arm of international bank HSBC is giving contactless debit cards to one million customers before the end of the year.

The bank is planning to reissue all customer debit cards to include MasterCard PayPass technology which allows people to place debit cards on scanners rather than sign their name when they make a purchase under $25.

In a press statement, Kevin Newman, senior executive VP for HSBC's personal financial services, said: "With [this], we're adding time savings and convenience to our debit checking account packages and using technology to improve our customers' experience."

In a similar way to London Underground's Oyster Card, contactless cards transmit payment details wirelessly between the PayPass device and a retailer's terminal. The transaction is then processed through the MasterCard network for clearing and settlement. The cards also include a magnetic stripe for traditional signature card transactions.

Several US retail chains, including McDonald's and 7-Eleven, have implemented scanners to read the contactless cards.

Last year MasterCard said it was working with Motorola to create a mobile phone handset that can be used as a credit card.