NXP and Austria Card Enable Secure, Cashless Payments with Lufthansa Miles & More Credit Card

EINDHOVEN, Netherlands--(BUSINESS WIRE)--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.

About NXP Semiconductors

NXP is a leading semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 31,000 employees working in more than 20 countries and posted sales of USD 6.3 billion (including the Mobile & Personal business) in 2007. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at www.nxp.com.

About MasterCard Europe

MasterCard Europe is the entity responsible for managing MasterCard Worldwide’s business in Europe - for Europe. With headquarters in Waterloo, Belgium, MasterCard Europe works with 51 European countries organized administratively into three customer areas, incorporating the Single Euro Payments Area (SEPA), mature markets and the developing markets of Europe, stretching as far afield as the eastern border of Russia. Through its network of local offices, MasterCard Europe can understand and meet the diverse needs of customers in the very different types of markets throughout Europe, enabling people to do business in their own way in their own language.

Through MasterCard Worldwide, MasterCard Europe offers its European customers and consumers access to leading payment services throughout the world. MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 18 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard^®, Maestro^® and Cirrus^®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.

About Austria Card

Austria Card is the leading supplier of cards and personalisation services in Austria and Eastern Europe. The company is a member of the Greek Inform Lykos Group and offers innovative end-to-end solutions to banks, retail organisations and governmental institutions for card supply, transactional printing and business service outsourcing. The product range comprises plastic cards with our without chips for secure payment and identification. The company has developed its own ACOS^® chip operating system and application range. Production facilities and service bureaus are located in Vienna, Athens and Bucharest.

Forward-looking Statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of NXP and certain plans and objectives of NXP with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.