For the first time, Tim Hortons customers in Canada will be able to pay for their purchases with their MasterCard cards thanks to an agreement announced today between MasterCard Worldwide and Tim Hortons. Under the agreement, Tim Hortons will accept MasterCard at participating counter and drive-thru locations across Canada, and for a limited period, MasterCard will be the exclusive credit card accepted at Tim Hortons. The deal includes deployment of MasterCard PayPass contactless technology. Approximately 500 Tim Hortons locations are currently installed with MasterCard capability and more locations are being added throughout the summer.
"Adding the option of MasterCard payment gives our customers more choice and flexibility," said Paul House, Chairman and CEO, Tim Hortons. "It's a great way to enhance our customer experience."
MasterCard Canada has been expanding card payment capability into categories of merchants that have not traditionally accepted credit card payment before - such as convenience stores, parking lots, and quick-service restaurants. MasterCard is facilitating payment card acceptance in quick service environments with its exclusive Quick Payment Service (QPS) and MasterCard PayPass programs.
"We are seeing Canadians use their MasterCard cards for more daily purchases" said Kevin Stanton, President, MasterCard Canada. "Bringing MasterCard payment to Tim Hortons is a big step in meeting that demand. Without a doubt, the partnership of the two great brands is truly priceless."
More than 36,000 Canadian quick service merchants are already using MasterCard QPS, which allows designated categories of merchants to process small value transactions without requiring a receipt or signature (although the consumer can always request a receipt), thus making the payment processing more efficient than handling cash.
"With MasterCard Quick Payment Service, the card is presented, swiped and processed immediately," said Stanton. "It marries payment convenience and speed while retaining security and fraud protections for the cardholder and merchant."
MasterCard PayPass uses radio frequency technology to transmit payment details wirelessly between the PayPass device and the merchant's terminal. The transaction is then processed through the MasterCard network for clearing and settlement. PayPass cards can also be used in the traditional manner anywhere MasterCard is accepted around the world.
MasterCard PayPass is ideal for traditional cash-heavy environments where speed is essential, and has led the way in bringing contactless technology to consumer categories where quick service is essential. There are nearly 13 million PayPass cards issued globally. The introduction of MasterCard acceptance at Tim Hortons will be supported by advertising and in-store signage and communications.
Tim Hortons is Canada's largest quick service restaurant chain. Founded in 1964 as a coffee and donut shop, Tim Hortons has evolved to meet consumer tastes, with a menu that now includes premium coffee, flavored cappuccinos, specialty teas, home-style soups, fresh sandwiches and fresh baked goods. As of April 1, 2007, Tim Hortons system-wide restaurants numbered 2,724 in Canada and 340 in the United States. More information about the Company is available at www.timhortons.com.
Certain information in this news release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, is forward-looking. Factors set forth in the Company's Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995, including by reference the "risk factors" outlined in the Company's most recent Form 10-K filed March 9, 2007, in addition to other possible factors not listed or described in the Safe Harbor Statement, could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. As such, readers are cautioned not to place undue reliance on forward-looking statements contained in this news release, which speak only as of the date hereof. Except as required by federal or provincial securities laws, the Company undertakes no obligation to publicly release any revisions to the forward looking statements contained in this release, or to update them to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unanticipated events, even if new information, future events or other circumstances have made the forward-looking statements incorrect or misleading. Please review the Company's Safe Harbor Statement at www.timhortons.com/safeharbor.html.
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 16 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 http://www.mastercard.com.
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