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MasterCard Tests Watches, Cell Phones As Credit Devices

Wristwatches, cell phones and key chains are among the gadgets that MasterCard Inc. is evaluating as potential tools for consumers to load credit or debit card information to buy a cup of coffee, a hamburger, concert tickets or countless other items.

The limited rollout of the new technologies is centered on a system called PayPass, which allows consumers to tap their card or device on a special merchant terminal. That eliminates the need for retail clerks to swipe a card through a card reader. Customers aren't required to sign if the transaction is less than $25.

MasterCard's recent tests of the new technologies include giving a PayPass wristband pre-loaded with $25 to spend to the first 5,000 fans entering Giants Stadium for its season-opener in September. And in a six-month test in Dallas, participating consumers are using special Nokia cell phones to make purchases at merchants.

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