Compass Plus facilitates adoption of MasterCard PayPass in Ukraine

1 November 2011

MasterCard Worldwide and PrivatBank carried out the first contactless payment transaction in Ukraine, using MasterCard PayPass technology in MegaMarket hypermarket in Kiev.

Ukrainian consumers now have an opportunity to make electronic payments by simply tapping the PayPass-enabled card on a special reader removing the need to hand the card over to the cashier to authorise the procedure. Moreover, if the total of the purchase does not exceed UAH 100 when using the card, there is no need to enter the PIN or sign a receipt to make a payment. The card always stays with the cardholder.

The PayPass sticker is an addition to PrivatBank's Kreditka card; it does not have its own account or any separate service conditions and it serves as a convenient method to access the main account. The PayPass-enabled sticker is embedded with a chip and a radio antenna which enable it to connect with the bank via a special POS terminal and instantly receive transaction verification. PrivatBank is the issuer of the first PayPass-enabled cards in Ukraine as well as the acquirer having installed the first PayPass terminals in the MegaMarket chain. PrivatBank’s processing centre is built on the TranzWare product suite by Compass Plus; PayPass-enabled cards are personalised by TranzWare Card Factory, whilst the card processing is performed by TranzWare Online.

The data on PayPass sticker is secured by the same encryption standards that are used for smart cards. PayPass technology also provides built-in safeguards preventing unwanted purchases:

- PayPass-enabled card (or any other PayPass-enabled device) must be held closely to the reader in order to work
- the card is charged only once per purchase, even if the device is tapped twice

The worldwide adoption of MasterCard PayPass technology started in 2004 with contactless payment terminals appearing in the McDonald’s chain in Canada, USA, Japan and the Philippines. Currently, PayPass technology is present in 37 countries around the world and its global acceptance continues to grow. As of Q-II 2011, approximately 100 million cards and devices were equipped with PayPass all over the world. The PayPass acceptance network spans over 341,000 merchants in market segments such as fast-food restaurants, supermarkets, petrol stations, car parks, buses and taxis.

Currently in Europe this technology is most actively implemented by banks in Great Britain, France, Poland, Russia, Germany and Turkey.

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