MasterCard Worldwide is making a major push behind contactless payment in Milan as it tries to establish its PayPass brand on Italian soil.
The card scheme has paid for 1,000 billboards in and around the city promoting contactless payment, lined up a dozen issuers and–potentially crucial for recruiting merchants–lowered interchange for PayPass transactions.
The lower interchange could encourage more merchants to install contactless readers or, if they don't accept cards at all, to hook up point-of-sale terminals. This along with the fact that Italians make the vast majority of their retail purchases with cash will make Italy a key test of the market-worthiness of contactless payment. MasterCard and rival Visa target cash with their contactless applications.