Friday, November 24, 2006

Visa contactless cards - ePaynews

Visa UK Plans Contactless Rollout in 2007


Nov 24 2006 : Visa UK says its member banks have agreed to roll out contactless cards across Britain, by the end of next year, starting in London.

The rollout will enable cardholders to purchase low-value everyday items, such as their morning coffee and newspapers, by waving a contactless card over a card reader in participating stores, Visa says. The contactless cards will contain EMV chip-and-PIN technology as well as an RFID contactless chip. Cardholders will not be required to enter their PIN for contactless transactions that are under a preset amount. However, if the number of contactless transactions carried out by a cardholder exceeds the card's daily floor limit, the card will need to be swiped in a reader and the PIN entered. "With over 75 percent of all UK cash payments being less than £10 (USD19), the introduction of contactless payments will play a major role in encouraging the use of cards over cash for low-value transactions," Sandra Alzetta, Visa Europe's Senior Vice President, Consumer Market Development, says in a statement. Visa says contactless payments are particularly suited to retail environments such as fast food outlets, newsagents, parking facilities and vending machines, all of which have a high cash turnover and where rapid checkout times are desirable. Research carried out by Visa indicates that UK consumers are likely to appreciate the convenience and speed that contactless cards offer as an alternative to cash, the association says. Visa and its UK members are currently holding discussions with retailers to win their support in advance of the contactless rollout. Further details of the launch plans are expected to be available by March 2007, according to Visa.

Related Links
MasterCard Announces European Contactless Trials
RBS Says Contactless EMV Trial a Success

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