Contactless credit cards in four months
0705
British consumers could be paying for low-cost transactions with just a wave of their debit or credit cards in as little as four months.
Apacs, the country's payment association, says that 'contactless' plastic technology will be trialled in London in September, ahead of a national rollout in the new year led by Visa Europe and MasterCard.
Under the details revealed today, people in certain capital postcodes will be able to use their debit or credit cards in a similar way to London Underground Oyster travel cards by simply touching them on to or passing them over a reader.
Apacs says the contactless technology, to be used in conjunction with participating businesses and vending machines, is "fast, effective, easy to use", as well as being as secure as existing chip and pin services.
Transactions of £10 or under will be payable in this way during the London trial, which will run in seven postcodes between the City and Canary Wharf.
It is thought that five million contactless debit and credit cards will be in use in Britain by the end of 2008.
"Today we are giving Londoners a completely new way to pay for low-value items with the launch of contactless payments," said John Bushby, general manager at MasterCard for the UK, Republic of Ireland, Nordic and Baltic countries.
Visa UK's managing director Jose San Juan added that the cards and corresponding terminals will provide a "highly convenient and quick way to pay for low value items".
"By the autumn the first UK cardholders will be buying a coffee or a sandwich in a split second, and retailers will enjoy quicker transactions, the security of the payment guarantee and an end to the high costs associated with handling cash," he explained.
Separate Article in The Scotsman Newspaper : 8/May/2007
Banks bring in 'contactless' cards
BRITAIN'S first "contactless" credit cards will be introduced this year, allowing shoppers to make payments of £10 or less without having to enter a PIN or sign a slip.
Banks including the Royal Bank of Scotland and the Bank of Scotland will issue the cards in London from September, with a UK-wide rollout during 2008. It follows a successful trial by RBS among staff at its headquarters in Scotland.
The technology is based on London's "touch in, touch out" Oyster travel cards and is expected to be used by five million Britons by the end of 2008. The banks will supply terminals to coffee shops, vending machines and other retailers, allowing smaller purchases within seconds. Purchases worth more than £10 will still have to be processed through chip and PIN terminals.
Sandra Quinn, head of communications at Apacs, the card industry's trade body, said consumers could be assured the new technology would be secure.
"As well as having a limit of £10 a transaction, you'll only be able to carry out around six or seven contactless transactions before you are forced to use chip and PIN again," she said.
Britain's first trial of contactless payments began last June at the RBS headquarters at Gogarburn, Edinburgh and allowed employees to use contactless cards at 11 shops. Over 40,000 transactions have been made.
David Rockliff, head of business development, cards and direct finance at RBS, said: "Nearly three-quarters of staff who took part say it is better and faster than paying with cash."
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