NEW YORK (CNN/Money) - McDonald's Corp. announced Wednesday it would launch later this year a new "contactless" payment option called MasterCard PayPass, which lets customers simply wave or tap the card to complete a quick transaction.

Here is how it works.

MasterCard PayPass cardholders can make a purchase at participating McDonald's restaurants by tapping or waving the card on or near a special terminal that utilizes a radio frequency (RF) chip. There's no swiping required.

The company said it would install the "contactless" payment systems at select restaurants in Dallas and the New York metropolitan area later this year, and it planned to add more locations in 2005.

"McDonald's is always looking for new and innovative way to use technology to improve customer service in our restaurants," Jim Sappington, McDonald's U.S.A. vice president of information technology, said in a statement. "The convenience of MasterCard PayPass will help our customers get their Big Macs, Premium Salads and Happy Meals even faster."

McDonald's (MCD: Research, Estimates) currently accepts cashless payment options -- debit and credit cards -- at more than 4,500 restaurants of its 13,500 in the United States. It expects up to 8,000 of its restaurants to do so by the end of 2004.