MasterCard says it will deploy 410,000 MasterCard PayPass-enabled point of sale (POS) terminals throughout Japan over the next three years.

The terminals will enable travellers visiting the country to enjoy the speed and convenience of making contactless transactions.

PayPass, which is currently accepted at about 866,000 merchant locations in 51 countries, is offered by more than 200 issuers worldwide. In February, MasterCard reported strong growth of contactless payments on MasterCard-enabled across the Asia Pacific, Middle East and Africa region in 2012, citing a 28 per cent increase in merchant locations, reflecting a strong demand from consumers in the region for simple and secure ways to make everyday payments.

The early adoption and penetration of contactless payments in Japan, ahead of other countries, saw transactions amounting to over 2 trillion yen in 2011, according to the Bank of Japan.

Contactless payments continue to expand at a rapid rate, in part due to the increased use of NFC payments.

MasterCard contactless payments can be made at retailers including Macy’s, Walgreens and Toys R Us in the US, Transport for London, Marks & Spencer and Carrefour in Europe, city taxis in Singapore and Taiwan, and Shin Kong Mitsukoshi, 7-Eleven and Starbucks in several locations across Asia.

In Japan, signatures have not been required for MasterCard contactless purchases under 10,000 yen (US$95) since October 2012 for consumer and retailer ease and convenience.

The 410,000 MasterCard contactless terminals will be deployed by domestic card companies including Mitsubishi UFJ NICOS, Sumitomo Mitsui Card, Orient Corporation and UC Card.