Contactless Cards: the Next Big Thing?

Contactless Cards: the Next Big Thing?

Contactless Cards: the Next Big Thing?

'Contactless Cards' has been a buzz-word in the card industry for the last couple of years, but how many people own one, and is anybody actually using them?Here in the UK they have been hyped by TV advertising, recently featuring in a high-profile commercial featuring a happy consumer effortlessly zooming down a water-chute, apparently having the time of his life, and empowered by his Contactless 'OnePulse' card which he merely flashes at retailers' reader machines to continue unfalteringly on his merry way.'OnePulse' is Barclaycard's first contactless product, designed to revolutionise the way consumers pay for low-cost items. Contactless technology allows shoppers to make a small purchase without the need for any signature or PIN number. The card is simply held up to a special contactless reader which automatically registers the payment. The money is then either deducted from the customer's bank account or charged to their credit card account. In the UK the new-style card can currently be used for purchases of up to 15; in the Euro-zone the limit is slightly higher at 25 Euros, around 22.50.In spite of the hype, contactless technology has not really taken off in the UK. This is largely down to consumer concerns about security issues: it is understandable that shoppers are reluctant to embrace a payment method that takes place at speed and without the security blanket of a PIN Number or signature.The credit crunch may also be playing a part in the lack of take-up: the new technology depends on retailers investing in new machines to read the cards and register the payments, an investment that cash-strapped retailers may be reluctant to make in the current economic climate.Coffee shops are thought to be an ideal place for contactless payments, with 'Eat' and 'Prt a Manger' being early adopters of the technology. Boots have trialled the contactless system but have yet to roll it out to their stores nationwide. Reading United FC tried it out for a season and found it helpful in reducing queuing times for tickets, but will not be adopting it any time soon due to financial constraints.Banks are much more enthusiastic than retailers and consumers, and are hoping that it will help them in their drive to phase out the use of cheques. To date there are around 9,000 contactless payment points in operation in the UK. It is estimated that over 1 million contactless cards have been issued here so far; Barclays plans to issue a further 3 million to its customers during the course on 2010, and anticipates that most of its cardholders will own one by 2011. Lloyds TSB expect to have issued around 600,000 contactless debit cards by the end of the year, but the process has been slowed due to the merger with HBOS.The contactless approach seems to have been more readily accepted by consumers in the Far East, where cards have already been supplanted by other devices such as watches and phones. Back in the UK it is hoped that the 2012 London Olympics will act as a catalyst to increases contactless acceptance, by introducing schemes to speed up payments for items such as cab fares and parking tickets.

POST COMMENT

Important Tarot Cards And What They Really Mean TAROT READING—DEALING WITH THE COURT CARDS International Calling Cards Calling Between Nations Made Easier Sim Only Deals All Offers On Sim Cards Only Ghana Calling Cards Calling Cards That Keeps You Closer To Your Dear Ones International Calling Cards Make Long Distance Calls At Cheaper Rates Where to Get Custom Greeting Cards How to Print Cards on Your Own Difference Between Coupons, Vouchers and Gift Cards Drop Cards Will Allow You to Domintate Making Thank You Cards Can Be Easy Calling Cards Now Make Long Distance Calls At Cheap Rates Postcards: Flexible, Innovative, And Effective