“MasterCard is testing a new credit-card system designed to speed the payment process at check-out counters and replace cash transactions at places such as movie theaters and fast food restaurants.

The system, called MasterCard PayPass, allows consumers with specially equipped credit cards to simply tap or wave their cards against a reader to make a payment, rather than having to swipe the card. If the value of the purchase is under a certain amount, the cardholder needn’t sign a receipt.” CNET

Visa readies wireless smart cards: “Visa International is making a push with a new smart-card payment system that would allow hands-free transactions.

The credit card company said Thursday that it plans to set up a new system that uses smart cards fitted with radio-frequency chips (sometimes called RF identification, or RFID, tags) that will allow people to conduct a transaction, such as paying a subway fare or buying a soda, without having to fish for change or swipe a credit card.” CNET

Sun, Compaq support smart-card push: “Facing declining profits from traditional credit cards, financial institutions are once again pushing microchip-equipped credit cards. But now they have new allies: Sun Microsystems and Compaq Computer.

Financial companies have failed to popularize so-called smart cards in the United States, but the new effort is different in several ways, which could mean success this time. With the backing of American Express and Visa International in combination with three major card issuers, millions of the cards are expected to enter circulation this year.

And with each card that’s issued, Sun Microsystems makes a little bit of money as a royalty for its Java software, used to run the software on the tiny computer inside the card. ” CNET