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Subway to accept contactless payments in 2012

Announcement comes shortly after Subway begins testing mobile payment option.

October 6, 2011

By the end of the first quarter 2012, more than 7,000 U.S. Subway restaurants will accept contactless payments through the MasterCard PayPass platform.

The restaurants are installing the new Tap & Go Payment Readers, which are expected to increase speed and convenience at the point of sale. Through the system, consumers will be able to pay for the meal just by tapping a MasterCard PayPass-enabled card or device at the register.

MasterCard PayPass does not require customers to sign receipts for purchases under $50, further speeding up the transaction.

Tony Pace, senior vice president and global chief marketing officer for the Subway Franchisee Advertising Fund, said this roll out adds yet another payment choice for customers and is convenient and easy to use.

"Our fans are accustomed to having choices when they walk through our doors," said Tony Pace, senior vice president and Global Chief Marketing Officer, Subway Franchisee Advertising Fund. "Now with MasterCard PayPass, they'll have another payment choice that is convenient and easy to use."

As of the second quarter of 2011, nearly 100 million PayPass-enabled cards and devices have been issued worldwide. Whether enabled via a phone, card, key fob, mobile payment tag or other device, MasterCard's PayPass technology offers consumers another way to pay for goods and services at 341,000 merchant locations worldwide.

"Subway's decision to provide PayPass acceptance is a testament to the popularity of contactless payments and our shared goal of providing consumers a faster and more convenient payment experience and a more enjoyable dining experience," said Mario Shiliashki, senior vice president and group head, U.S. Emerging Payments, MasterCard Worldwide.

Although the adoption has been slow in the U.S., some chains have added contactless payment options, including Tim Hortons and Whataburger.

McDonald's UK went contactless this year, shortly after the Australian system did the same.

Adding yet another payment option

Alternative payment options will soon be plentiful at Subway, which also announced in early August that it is testing Google Inc.'s mobile payment platform Google Wallet.

The chain anticipates testing the open-source payment platform in five markets initially.

Google Wallet uses near field communication (NFC) technologies embedded in smartphones and was launched in May.

Joost Zimmerman, Subway's director of digital marketing, said that now was the right time for the launch because of the "astounding" adoption rates of Smartphone use and faster networks.

Subway's mobile marketing campaign is in the process of rolling out to the more than 24,000 stores in the U.S., with the global adoption planned through 2012.

Read more about systems and technology implementations.