The rise and rise of contactless payment technology

The rise and rise of contactless payment technology.

 

Although seemingly slow to take off in the early days contactless payment technology now seems to be gathering momentum. Poland leads the way in Europe according to Visa’s Mark Austin; with just over 158M transactions using contactless cards in 2013. The UK saw 94M payments using contactless cards, up from 25M in 2012. 

TFL made the decision to go cashless on the London bus network from mid 2014 and already around 50% of what were previously cash transactions are now made using contactless. The expansion of the system across the Tube and DLR etc will be mirrored throughout the UK, for example in Manchester on the Metro and across Liverpool’s rail station network. 

The intended closure of London underground ticket offices (recent Tube strikes) demonstrates the impact on the use of cash and the costs to business of using cash when compared to the lower costs of automated contactless payments. However this convenience doesn’t come without issues. 

TFL has a major awareness campaign (posters, speaker announcements and internet adverts included) warning about what they describe as “card clash”. So what is card clash? Is it your credit debit cards arguing over payment? Of course not; what is really being described is the inability of the contactless payment reader to know which card you intend to use. Most of us carry several bank cards as well as travel cards such as Oyster. The payment terminal will take payment from the first card it properly connects with, whether or not that is the card you intend to use. Much advice is to separate your cards (carry two wallets?).  What happens if you enter the travel system for example London Underground and pass your wallet over the reader to log in your journey? The terminal reads card A, you then exit the system at the end of your journey and when you log out card B is read. Well you would be charged maximum fare on each card as you only have one read on each card and thus one journey on each card without a start and finish point. 

That’s where a simple and effective way of putting you back in control of your cards and when they get scanned comes in. VoyagerBlue contactless card shields are patented; fully tested and when in your wallet or purse next to your contactless credit or debit card will block any unwanted transactions. Watch video here. They will also prevent the possibility of fraudulent scanning of your personal data. The same technology will prevent unwanted scanning of your biometric passport. This may seem a little futuristic but already apps are available for modern smart phones that will read information on the chips used in bank cards, passports and more. FIND OUT MORE 

There were reports in the media earlier this year about unwanted transactions at major retailers in the UK due to proximity of readers to cards at till locations. 300,000 terminals were in place by the end of 2013 in major high street retailers and this will significantly increase through 2014/15 as the technology is more widely accepted. 

With all major issuers offering contactless cards and around 35 Million contactless cards already issued in the UK we will see continued rapid growth in this sector and its effect on the use of cash for lower value payments. The author also believes that the value of payments allowed per transaction will increase in the near future as the use of contactless cards becomes a major payment method. 

Food for thought, do you embrace the technology or do like the security (or not) of cash. Your data/personal information is being carried by the chips in your everyday items, watch out for the same technology in hotel room keys, season tickets and more and consider do you need to take steps to be in control of your “contactless”. Take a look at the video to see how you can keep control of your cards and data.  Watch Video