Semiconductor firm Infineon Technologies AG (NYSE: IFX) agreed to provide chips for one of the world's largest contactless payment networks, the firm announced today, entering into a new agreement with MasterCard Inc.
The deal will allow the chip maker to power MasterCardâ€™s new payment systems, which it plans to introduce into 13 countries, the companies announced on Friday. Financial details were not disclosed.
Serving as a preferred partner for many of todayâ€™s major contactless payment systems demonstrates Infineonâ€™s strong commitment to providing best-in-class semiconductor products, helping to institute new payment applications and driving next-generation contactless schemes, said Dr. Helmut Gassel, Vice President and General Manager at Infineon.
Germany-based Infineon said nearly 400 million chip-based payment cards were introduced worldwide in 2006, of which some 17 million were contactless chipcards from Mastercard and Visa.
The technology allows consumers to pay for goods and services by simply swiping their contactless enabled credit-cards over a receiver station.
Shares of the company fell 2.59 percent, or $0.41 cents, to $15.45 in afternoon trading on the New York Stock Exchange.