News

American Express tests contactless payment system

July 20, 2003

NEW YORK -- American Express Company will expand the Phoenix-area pilot test of its ExpressPay radio-frequency payment technology.

ExpressPay is a fee-free, key fob (key-chain attachment) powered by radio frequency. ExpressPay, which the company began piloting last summer with its employees in Phoenix, is now available at more than 175 merchant locations in the greater Phoenix area, including all Carl's Jr. locations and participating Dairy Queen, Kwik Kopy Printing, Quiznos Subs and Schlotzsky's Deli locations, according to a news report in NACS online.

American Express said ExpressPay is an alternative to cash for making purchases when speed and convenience are important to consumers--such as at gasoline stations, quick-service restaurants, supermarkets, drug stores and corporate cafeterias.

Users hold the ExpressPay key fob next to a companion reader at checkout to make purchases. Payment is authorized in seconds and no signature is required. ExpressPay links directly to an existing credit, charge or debit card to fund the purchase.

Consumers have the option of funding ExpressPay as a direct link for payment to an American Express Card or as a prepaid product linked to any major credit, charge or debit card.

ExpressPay Direct Link, with a daily spending limit of $150, links to any consumer American Express charge or credit card for payment, with individual charges recorded directly on the monthly billing statement.

Customers who make ExpressPay purchases linked to their American Express Cards will receive the rewards and loyalty benefits associated with their cards.

Since the launch of the ExpressPay pilot, American Express said results show that participating merchants have seen customer spending increase by 20 percent to 30 percent compared with their cash spending, while customers have seen their checkout time reduced by 30 percent to 40 percent.

American Express developed ExpressPay in conjunction with Texas Instruments RFid Systems, a leader in radio frequency identification technology.