New EMV card powered by NXP’s SmartMX chip features MasterCard® PayPass™ technology for fast, secure transactions

Eindhoven, Netherlands, September 30th, 2008 – Heralding a new era for contactless payments in Europe, the new Lufthansa Miles & More Credit Card has debuted in Germany, now offering its holders the convenience of secure, Tap & Go™ payment transactions. Already used five times more frequently than other credit cards in Germany, the new Lufthansa Miles & More Credit Card features a SmartMX security EMV chip from NXP Semiconductors, the world leader in the design and manufacturing of contactless chips used in smart cards. The card, produced by Austria Card in Vienna, is a MasterCard card and issued by Deutsche Kreditbank AG in cooperation with Lufthansa. 

“The Lufthansa Miles & More Credit Card extends the Miles & More program into the daily lives of our customers,” said Carsten Schaeffer, Managing Director from Miles & More International. “From booking a flight, re-charging in a lounge to ‘ensuring’ peace of mind while traveling, the Miles & More Credit Card simplifies and enhances our cardholders lives. The MasterCard PayPass feature in particular offers customers the convenience of paying quickly – enabling them of having exact change for quick, secure transactions on the go.” 

The new Lufthansa Miles & More Credit Card is the first credit card in Germany to offer MasterCard PayPass technology. MasterCard PayPass, an innovative contactless payment technology already successfully introduced at participating retailers in the United States and 23 other countries worldwide, enables the payment of up to 25 Euros with just a simple tap of the card over the PayPass reader – no signature or PIN required. For consumers, contactless payments offer the convenience of having exact change for small transactions when speed is essential – at quick-service restaurants or newspaper kiosks, for example, or when paying for a taxi. 

“The availability of contactless payments through the Lufthansa Miles & More Credit Card is a major milestone for contactless applications in Europe. Over time, we expect that contactless payments will become a ‘must have’ feature that will increase the frequency of card usage and further improve customer retention,” said Steve Owen, vice president, sales and marketing, Identification, NXP Semiconductors. “With contactless payments, consumers enjoy convenience and shorter queues, while retailers benefit from greater customer satisfaction and a reduction in handling and service costs. For card issuers, we expect that offering contactless payment in addition to other features – such as a frequently flyer or loyalty program – will help to boost card usage over time.” 

The SmartMX IC from NXP Semiconductors, an integrated dual-interface EMV chip, which is Common Criteria EAL 5+ certified by the German Federal Office of Information Security (Bundesamt für Sicherheit in der Informationstechnik), ensures that the credit card complies with the highest security requirements. For purchases of more than 25 Euros, card holders still need to sign or enter their PIN, while online purchases are verified through a MasterCard Secure Code™ known only to the card holder. By 1 January 2011 the SEPA (Single Euro Payments Area) Card Framework mandates EMV Chip and PIN as the supporting technology going forward. “The SEPA mandate continues to drive the EMV migration in Europe and enables an increasing interest in innovative multi-application card programs” said Toni Merschen, Group Head Chip at MasterCard Worldwide. 

“Our collaboration with NXP in producing the Lufthansa Miles & More Credit Card demonstrates our commitment to providing first-class technology to help our customers maintain the highest levels of security,” said Friedrich Ramberger, CEO, Austria Card. “The participation of important financial institutions in Germany underscores growing enthusiasm for contactless payments, as European consumers start to embrace the benefits of ‘tap and go’ systems.” 

The first MasterCard PayPass terminals in Germany have been installed at checkout counters in the Frankfurt and Munich Airports, and are expected to become more widely available through participating retailers throughout the country. The Lufthansa Miles & More Credit Cards are currently accepted in more than 27 million locations across the world.