By Gemma Simpson, 4 September 2007 16:18
NEWS
MasterCard has launched its contactless payment tech in the UK.
The MasterCard PayPass and Maestro PayPass contactless cards allow consumers to buy items costing less than £10 by simply waving their debit or credit card in front of a reader.
The rollout of contactless card readers has started in London, in several areas including Canary Wharf, with participating retailers in the rest of the UK set to get the tech over the course of next year.
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In a similar vein to London Underground's Oyster Card, contactless cards transmit payment details wirelessly between the PayPass card and a retailer's terminal. The transaction is then processed through the MasterCard network for clearing and settlement.
The so-called "tap and go" payment feature can be added to any MasterCard credit, debit or prepaid card or Maestro debit card and HSBC and the Royal Bank of Scotland have already signed up to use the technology. Retailers participating in the scheme include Books Etc, Coffee Republic, Eat, McDonalds and Science Museum.
Payments industry body Apacs estimates more than five million contactless cards will be issued by the end of 2008 in the UK and that they will be accepted by at least 100,000 retailers.
Around one-third of UK consumers said theft (34 per cent) and loss (33 per cent) are the two main reasons they do not want to carry cash on their person, according to research from YouGov on behalf of MasterCard.
But only one in six of those surveyed said they decide "often" or "very often" against making everyday purchases such as newspapers, sweets or sandwiches, because they don't have the change and don't want to break a note.
Comments
There are 7 comments. Join the discussion
1. Cap'n Jack Sparrow
Can't wait until the card readers turn up on eBay ;)
2. anonymous
I notice my Oystercard doesn't seem to get read properly when its in a wallet alongside my new (chipped) passport. I wonder what happens when we end up carrying several contactless cards from different providers - does each have to be presented in its own separate wallet? Perhaps delay seconds will be added back to queue times as each person fumbles in their pockets to pull out the right card.
3. Stuart Wilson
Is security going backwards again ...it started with Chip n PIN, which is easier to steal than the good old signature, and now we're doing wireless payments. Maybe a combination would have been better, but I guess its in the credit card companies interests to have fully automated payment processing over security.
When the scanners are readily available, I can just pass one over someones back pocket or handbag, and I'm away ...in, fact, i could have a few attempts at guessing the PIN without anyone watching me do it.
Some people come up with stupid idea's and this is another one of them.
4. Graham Coles
So if the survey is to be believed, around 15% of people go without lunch to avoid upsetting the balance of notes in their wallet. Supposedly they just go hungry instead of breaking into that fiver for some sandwiches.
Apparently one third are also concerned at losing change, but have no problem with walking around with an rfid payment card that can be read from a distance and requires no user authentication.
How long will it be before we see people roaming the train stations with remote readers scanning peoples cards as they walk by.
I wonder also if the itemized statements could end up rivalling the size of the infamous 300 page iPhone bills, and how many people would bother to check them.
5. James Pomeroy
If I have two cards in my wallet which will be charged - not a problem with oyster as are only likely to have one card?
6. anonymous
This idea is worse than cash for security.
If we are going to be forced down this route by card suppliers, who are only doing it to make money, by replacing cash transactions for card transactions for which they can levy a fee on the retailer, then I am for one am going to stick to a pre-pay card where I can control how much money is available to be stolen.
Transactions may be limited to £10, but is you are using a debit or credit card, the is no limit on the number of £10 transactions that can be made.
My cousin regulalry gets over charged on her oyster card, which is supposed cap at a daily limit, thus often leaving her stranded until she can top up her card, and in a position where she has to keep claiming back wrong charged fares.
7. anonymous
These cards would bother me a lot. I was cloned on the old analogue cell phone system - lots of problems, some of which did not surface for nearly 18 months and required the threat of legal action against one of the credit reference agencies to sort out.
I will be watching from the sidelines for quite a while before carrying one of these cards.