The PayPass system uses MasterCard smartcards incorporating radio frequency technology to communicate with terminals embedded in point of sale devices such as gasoline pumps to instantly approve and register a retail sale.

PayPass is also in use already at major grocery stores, cinemas and international fast-food restaurant chains including McDonald’s and Tim Hortons.

Now, Coca Cola is implementing the PayPass system in vending machines across Canada. This is not a pilot project, Coke insists. Some 400 machines have already been ‘upgraded’ to PayPass capability and plans are in place to add PayPass terminals to as many as 5,000 vending machines across the country by the end of 2010.

If PayPass proves popular among cola fans, other vending machine operators are expected to follow Coke’s lead.