BOSTON, MA -- (MARKET WIRE) -- 10/12/07 -- SMART CARD ALLIANCE ANNUAL CONFERENCE -- The vigorous take up of contactless payment in the United States and its future in mobile phones, plus a Mount Sinai Medical Center initiative to give patients control of their own health and hospital registration information, were among many highlights as the Alliance brings its annual conference to a close.

Contactless Payment and Transit

Conference presenters representing payments brands, merchants and issuers were universally enthusiastic about the uptake of contactless payment in the United States.

Andrea Brandt, financial services manager for the Meijer retail chain with 15,000 contactless payment terminals in 181 stores, reported Meijer experienced a 44 percent monthly sales lift for customers paying with contactless cards.

The Baltimore Ravens stadium reported contactless payment is simpler and faster than cash, raises the average transaction by $8 and reduces time in line.

Michael Liard, research director at ABI Research, estimates that there are 150,000 contactless payment terminals in 55,000 retail locations in the U.S. Conference attendees learned BP will start accepting PayPass at 3,000 U.S. locations next year, Coca Cola is installing contactless at 7,500 additional vending machines and more than a dozen airports have committed to accepting contactless payment including Atlanta, Chicago, Philadelphia and Dallas.

Transit operators in every major U.S. city are implementing contactless smart card-based fare collection systems, and for good reasons. "It's the fastest way to get on a bus or enter the subway," Jonathan Davis, deputy general manager and CFO of the Massachusetts Bay Transportation Authority, told conference attendees. His organization has issued 1.4 million free "Charlie Cards" for contactless fare payment this year. Riders now pay for 60 percent of their subway trips and 78 percent of bus trips using Charlie Card.

Davis touched on another hot theme of this year's conference, which is the use of contactless payment cards issued by financial institutions in America's transit systems. "I think we want to take advantage of that," he said.

MasterCard announced results from a PayPass/New York MTA pilot, stating 75 percent of credit and 71 percent of debit pilot participants would prefer to use PayPass for transit payment if it were accepted everywhere on the system.

Next Wave: Contactless Payment in Mobile Phones

The rapid growth in contactless is paving the way for the next big wave -- contactless payment using mobile phones. Wireless, banking and transit industry leaders and their technology partners have been organizing the standards, systems and business models needed to make this a reality.

At the heart of it is Near Field Communication (NFC), a technology standard that enables safe, fast and simple wireless communications over short distances of an inch or so. While it can be used for many different applications, enabling contactless payment in mobile phones, including transit fares, is getting the most attention.

NFC mobile payment is compatible with the base of contactless payment point-of-sale terminals already being installed at merchant locations in the United States.

Smart Patient Cards in Healthcare

The healthcare industry is learning that smart cards can speed up registration, reduce fraud, improve the quality of care and provide rapid access to critical information in an emergency.

Paul Contino, vice president of Information Technology at Mount Sinai Medical Center, heads up a program at Mount Sinai to use smart card-based personal health records. The patient carried cards contain identification and insurance information to speed up registration and reduce identification errors. It also stores medical information such as allergies, current medication and a recent history of tests and procedures to help avoid medical errors and duplicate procedures.

The personal health card is very privacy sensitive and secure, using the smart card to encrypt and protect data with a patient entered personal identification number, important for HIPAA compliance.

Mount Sinai and their technology partner Siemens formed the HealthSmart Network, and already have ten other New York City area hospitals that will also use the patient smart cards.

Lake Pointe Medical Center near Dallas, a Tenet hospital, is planning a smart health card pilot starting in January, technology and patient services provider S.M.A.R.T. Association announced at the meeting.

About the Smart Card Alliance

The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology. Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the United States and Latin America. For more information, please visit http://www.smartcardalliance.org.

Contact:
Deb Montner
Montner & Associates
203-226-9290
dmontner@montner.com