| Contactless technology is fast gaining popularity and is | | | | Chase reported that customer time at the POS is |
| an easy way to complete a transaction quickly and | | | | reduced 30-40% when using contactless technology. |
| securely. The introduction of EMV chip technology is | | | | American Express discovered contactless |
| producing new, faster and more convenient ways to | | | | transactions are 63% faster than cash and 53% |
| pay. The payment process involves no physical | | | | faster than traditional debit card methods. MasterCard |
| contact between the consumer payment device and | | | | noted significant time-savings in the drive-through |
| the physical point of sale (POS) terminal. The | | | | environment, where 12-18 seconds were saved during |
| consumer holds the contactless card in close proximity | | | | purchase time compared to cash. |
| to the POS terminal and the payment information is | | | | Prt-A-Manger are one of the number of fast-food |
| communicated wirelessly via radio frequency. | | | | chains to introduce contactless technology, their |
| Contactless payments have obvious benefits such as | | | | director of food of communications explained, Retailers |
| ease of use and security. They are also beneficial to | | | | need to find as many ways as possible to make their |
| companies who deal with vast numbers of quick, | | | | stores more appealing to consumers; convenience and |
| low-value payments as they do not lower transaction | | | | fast-moving queues through the use of contactless is |
| processing costs, unlike traditional chip and pin methods. | | | | one way of doing this. Other well known high-street |
| Although consumers are largely unfamiliar with | | | | retailers using contactless technology include EAT, Yo |
| contactless technology, there is a market for EMV | | | | Sushi and Coffee Republic. |
| chip technology and the contactless payments benefit | | | | In the UK, Barclaycard are the leaders in contactless |
| consumers and merchants alike. Retailers traditionally | | | | technology and their research shows 98% of |
| avoided using payment cards for low-value | | | | contactless card owners believe the process is easy |
| transactions because the processing would be too | | | | to use and 88% believed the process enabled them to |
| costly. With contactless technology all of these | | | | cut down the amount of time they would spend buying |
| problems no longer exist and a growing number of | | | | items such as coffee on a lunch break. |
| retail companies are taking contactless technology | | | | Contactless technology was first introduced in 2007 |
| onboard. | | | | and there are now over 20,000 stores in the UK |
| Banks across Europe are now in the process of | | | | accepting this as a payment type. Previously the |
| issuing a quarter of a billion Visa EMV chip cards and | | | | maximum amount you could spend using contactless |
| upgrading millions of card acceptance devices, making | | | | technology was 10 but as of March 2010 it was |
| the transaction process accessible to all. Contactless | | | | increased to 15. As people are always busy, demand |
| cards look like your normal debit/credit card, and the | | | | is increasing for quicker and more efficient ways to |
| technology is held in the small chip (microprocessor). | | | | pay for things on the move. Contactless enables a |
| Look out for the contactless symbol on your debit | | | | quick, secure payment method which is beneficial to |
| card when you renew it. | | | | both consumer and retailer and we expect to see a |
| There is a market for this new technology and | | | | lot more contactless technology in the future. |
| research conducted by big name banks proves this; | | | | |