How contactless payment systems are making cashless payments easier and quicker

March 25, 2011 at 11:36 am

An innovative new way to pay for goods or services (totalling £15 or under) with a bank card is saving people everywhere time and effort – it’s called ‘contactless payment’ – the quick and easy, cashless way to pay.

With contactless payment systems, an embedded chip in a credit card, debit card (or even a key fob or Smart Card) facilitates a lightning fast transaction at point of sale (tills in shops, takeaways, petrol stations, cinemas, etc.). Rather than entering a PIN, the customer simply waves their card over a till-side reader, a secure payment is made, and they’re off!

Banks are confident that the hassle-free contactless payment cards will be a huge hit with people across the UK, and not only for the convenience they offer. Instead of having to rummage in a bag for their credit card, debit card, or cash, customers can find their contactless payment key fob easily and quickly, thereby significantly reducing queuing time for everyone at point of sale.

Contactless payment is also expected to increase consumer spending, with contactless cardholders being more inclined to buy goods on impulse (popping into a newsagent’s to buy a bar of chocolate, newspaper or cigarettes; grabbing a quick cappuccino at a café…). There are even plans for vending machines to be ‘contactless card friendly’ in the coming months.

Of course, banks understand that data protection is paramount when it comes to all card payments; therefore, contactless payment system developers have worked hard to ensure their cards, key fobs and Smart Cards are completely secure to use during transactions.

Most banks offering contactless cards will send their customers one upon request. Also, the (optional) cards will be automatically dispatched by post when customers’ current credit cards or debit cards expire.

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