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In September this year, Visa and Mastercard are introducing ‘contactless payment technology’ specifically aimed at purchase of £10 or under. The theory is that a customer would just ‘waive’ their card over a special reader, without any need to key in a PIN.
It is really targeting small purchases, for example a sandwich, newspapers, a drink in the pub , a taxi ride or anything else you would normally hunt around to get change for. It is believed that queuing times will be greatly reduced for two main reasons :– 1) customers will not need to key in their PIN and have to wait for authorisation and 2) customers will not need to rummage around for money and then wait for change- all of which takes time.
It is very much expected to mirror the ‘oyster’ system which was successfully introduced on London’s transport system.
Some concerns have been raised by consumer groups that customers may risk running up huge bills and not remain aware of their spending habits.
To combat fraudulent use, customers will be asked for their PIN number after approximately six transactions, but this will be random and overall cut down waiting times and queues.
The following banks have already signed up to be part of the launch in September- Barclaycard, Halifax, Bank of Scotland, HSBC, Lloyds TSB and Royal Bank of Scotland, with the rest of the scheme extending UK wide throughout 2008.
Shops wishing to take part in the scheme will be required to install special card readers, however the same machine can be used by both Visa and Mastercard programmes.
Some smaller retailers are concerned regarding the costs of buying and installing these reading machines, and feel they are at an unfair disadvantage when compared to the giant stores.