American Express Begins Issuing Contactless Payment Cards Nationwide and Signs 7-Eleven, Inc. as Newest Expresspay Merchant
NEW YORK, June 06, 2005–American Express announced today that it has begun issuing Blue from American Express® with the ExpressPay feature in all 50 states. ExpressPay, a contactless chip for easy, convenient and secure payment, will be embedded in all new Blue from American Express® consumer and small business credit cards moving forward. In addition, the Company announced 7-Eleven, Inc. (NYSE:SE) as the latest national merchant partner to accept ExpressPay. 7-Eleven currently has ExpressPay-enabled readers in 170 stores in a test market and plans a full roll out to its more than 5,300 U.S. stores by early 2006.
ExpressPay is a new payment feature that consists of a secure computer chip powered by radio frequency technology. Designed for purchases at locations where speed and convenience are important–such as convenience stores, quick-serve restaurants, supermarkets, drug stores and gas stations–it is an easy-to-use alternative to cash. Users simply hold Blue with ExpressPay next to a special reader at checkout to make purchases. Payment is authorized in seconds and no signature is required. The computer chip enables end-to-end transaction security. Blue from American Express also has a magnetic strip and functions as a traditional credit card.
“We are very pleased with ExpressPay’s momentum in the marketplace,” said David Bonalle, vice president and general manager of Advanced Payments for American Express. “Blue with ExpressPay will allow us to get more cards with contactless payment functionality into the hands of our customers nationwide, and help consumers and merchants reap substantial benefits in terms of speed and convenience. In addition, we have a new, broad-reaching ExpressPay partner with 7-Eleven.”
American Express has been testing ExpressPay since 2002. The pilots involved many thousands of consumers making more than a million transactions with ExpressPay at hundreds of merchants. Test results showed that, on average, ExpressPay transactions are 63 percent faster than using cash. Market research with pilot participants also confirmed that consumers view convenience and simplicity of use as two of the major benefits. Important merchant benefits include reduced transaction time and increased spending relative to cash.
“We’re continually looking for new ways to deliver more speed and service for our customers,” said Rich Updyke, vice president of business development for 7-Eleven, Inc. “ExpressPay will allow us to provide a faster, more convenient and secure payment experience.”
The ExpressPay feature will be available on the following products:
- Blue from American Express
- Blue Cash from American Express
- Blue for Students®
- Blue for Business® credit cards
- Blue Cash for Business
ExpressPay adheres to ISO 14443, the interoperable standard that has been adopted by the major payment brands for conducting contactless payments. Many leading point-of-sale (POS) and reader manufacturers are integrating radio frequency (RF) technology into their POS equipment, enabling them to read ExpressPay and other contactless payment products. The adoption of a common standard as well as the availability of low-cost RF solutions for the POS that are simple to implement is facilitating the rapid acceleration of contactless payments in retail environments globally. In addition, ExpressPay contains a robust set of fraud prevention features. Customers also are not liable for any fraudulent ExpressPay charges.
For more information about ExpressPay, visit http://www.americanexpress.com/expresspay.
The introduction of ExpressPay continues American Express’ tradition of innovation. American Express introduced the industry’s first plastic credit card in 1959, and, in 1972, issued the first magnetic stripe card nationally. In 1999, American Express delivered the payment industry’s first wide-scale rollout of smart cards in the United States when it introduced Blue from American Express. The company also was an early adopter and industry leader in leveraging the Internet to develop new products, expand its customer service, and improve its overall operations.
About American Express
American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.
About 7-Eleven, Inc.
7-Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Headquartered in Dallas, Texas, 7-Eleven, Inc. operates or franchises approximately 5,800 7-Eleven® stores in the United States and Canada and licenses approximately 22,300 7-Eleven stores in 17 other countries and U.S. territories throughout the world. During 2004, 7-Eleven stores worldwide generated total sales of approximately $41 billion. Find out more online at http://www.7-Eleven.com.