[AI] 'Pay By Touch' Bank Cards Launched In London.
rajeshasudani at rbi.org.in
Mon Sep 10 07:57:44 EDT 2007
+ 'Pay By Touch' Bank Cards Launched In London.
Wireless-enabled bank cards tested in London this month will pave the
way for a new system of cashless payments, enabling small purchases
to be made in pharmacies, newsagents, and snack bars without
providing a PIN number or a signature.
The system is to be tested by around 1,000 retailers located in and
around rail and bus stations across the capital. For items costing up to
10 pounds, users will pay by simply touching a reader device located at
the cash till with new credit and debit cards issued by Barclaycard,
Visa, or Mastercard. The cards use a short-range wireless technology
known as Near Field Communication to exchange data with the reader
device, which emits an audible "beep" when the transaction is
By the end of 2007 it is hoped that 2,000 outlets will be involved in the
scheme, Barclaycard told E-Access Bulletin. "At this stage it's a
'chicken and egg' situation. We need interest from consumers before
retailers will take an interest. That's the reason we're concentrating on
London to start with. In the long term - and it's difficult to say how
long this will take - we expect most retailers will move over to the new
system," said the spokesperson.
In future, this way of making purchases will also be available from
vending machines located in places such as pubs or in the street, and
also from devices such as parking meters, said Barclaycard. "The big
retailers such as high street supermarkets will almost certainly take a
longer time, because their existing till systems are a significant
investment which has to be recouped before they think about new
technology," said Barclaycard.
Fear of fraud shouldn't deter people from using the new cards, said
Barclaycard. "Most card fraud is organised and involves larger sums.
But if a bank notices a pattern of unusual transactions it can request a
PIN number or signature before a transaction is processed," said
Barclaycard. The trial in London is part of much wider plans for the
technology, Visa told
E-Access Bulletin. "This is also being tested by Visa in France,
Turkey, and Switzerland," said a spokesperson.
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