PURCHASE, N.Y. – Some Dallas and New York metropolitan area McDonald's restaurants will start accepting MasterCard's Paypass Pay product at the end of this year, McDonalds and MasterCard have announced. MasterCard's PayPass is a new "contactless" payment option utilizing radio frequency technology, the companies said. MasterCard PayPass cardholders can make purchases at participating McDonald's restaurants without swiping their card through a traditional card-reader. PayPass cardholders tap or wave the card on or near a specially equipped terminal that utilizes a radio frequency (RF) chip to complete a payment transaction. McDonald's will have Verifone Omni 7000 card-readers installed to accept the new MasterCard PayPass card. "McDonald's is always looking for new and innovative ways to use technology to improve customer service in our restaurants," said Jim Sappington, vice president of information technology, McDonald's U.S.A. "The convenience of MasterCard PayPass will help our customers get their Big Macs, Premium Salads and Happy Meals even faster." McDonald's currently accepts cashless payment options at more than 4,500 restaurants in the United States and expects to increase up to 8,000 by the end of 2004. McDonald's has more than 13,500 restaurants in the U.S.

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