Visa to kick off contactless cards this autumn

Visa is to launch contactless 'wave and pay' cards this autumn to replace low-value cash transactions across the UK.

The rollout will start in London and act as a springboard for the widespread adoption of the Visa 'payWave' cards by retailers and consumers across the country.

Around 200,000 consumers are expected to use the contactless cards in the first few months, along with some 2,000 retailers deploying card readers.

The technology will allow people to pay for low-value transactions that total less than £10 - such as coffee and newspapers - by waving their card over a read. The tech speeds up transaction times as it largely dispenses with the need for the customer to enter a PIN number or sign a receipt.

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September will see the commercial rollout of the new Barclaycard Visa credit card, developed with Transport for London and Transys and featuring contactless payWave technology combined on the same card with the Oyster transit function. Visa payWave cards will also be issued by other Visa banks.

Visa will then introduce contactless payWave facilities at retailers around some of London's transport centres, including Canary Wharf, Liverpool Street and Waterloo stations.

Cardholders will be asked for their PIN numbers periodically to make sure the card remains with its genuine owner.

The Visa contactless card will be launched in partnership with banks including Barclays, HBOS, HSBC and Lloyds TSB.

In the UK, 80 per cent of the 27 billion cash transactions that take place annually are for items totalling less than £10, according to Visa.

Further payWave launches are expected in the rest of Europe with the next one due to be announced in Turkey, while France, Spain and Switzerland are well on the way to gaining the tech too.

Barclaycard, Transport for London and Visa teamed up to develop the tech to put contactless payments and Oyster card functionality together on the country's plastic last year.

After introducing the Oyster card-style contactless payment tech into its plastic Barclays has been working on a contactless system for the UK's taxis.