Identity, Security, Payments, Biometrics, Smart Cards and Authentication News

Commercial rollout of contactless payments to occur as multiple issuers deploy 'millions' in '05

Wednesday, December 15, 2004
&A panel of ID industry experts provided predictions for 2005. One of these glimpses into the future will appear here each day during December. If 2003 and 2004 were the “pilot” years for contactless payments in the United States, 2005 is turning out to be the commercial roll out year, with several major deployments scheduled. Speed and convenience are the major driving forces for these deployments, but not the only factors. Increased transaction volume and transaction amounts along with “top of wallet” effects have been recognized in the pilot programs as clear benefits for retailers that predominantly deal with cash transactions and have long lines of customers at their check out lanes during peak hours.

A considerable number of national brand retailers will start accepting MasterCard’ PayPass, American Express’s ExpressPay or Visa Contactless cards/fobs at their store locations. To date, McDonald’s has already announced its acceptance of PayPass devices at all of its 13,500 fast food locations. Similar deployments are expected from other national as well as regional retailers.

Equally, multiple card issuers are planning to issue contactless payment cards/fobs by the millions in 2005 here in the U.S. Some of the issuers have a regional focus, and some plan to do a national roll out.

Branded retailers will also be expanding their loyalty card, gift card, and pre-paid card programs using contactless technologies. Some of these retailers are already preparing for such programs to start in 2005.

Besides retailer-specific deployment activities in 2005, there will be dozens of closed system contactless payment solutions targeting stadiums, universities, corporate campuses, and ethnic communities. Some of these developments already started in 2004, leveraging contactless technology.

Next year will also be exciting on two additional fronts. First, contactless payments are already being planned for pilots and limited roll-outs in Asia, Europe, and Latin America. Secondly, there will be multiple exciting pilots here in the U.S. and abroad using NFC-enabled mobile phones.

In short, 2005 will be an exciting commercial launch year for the contactless payment in the United States while the rest of world will get ready for theirs in 2006.


Visit ViVOtech on the web at www.ViVOtech.com.

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Research and Markets announced the addition of Polasik Research’s contactless payment cards market report, “The Global Contactless Payment Cards Market”, to its offering.

The report describes the evolution contactless payment methods used at point-of-sale, with reference to the solutions offered under the American Express/MasterCard/Visa Agreement. The report also examines the prospects for the development of contactless payments all over the world, including the potential to develop into NFC-based mobile payments.

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Superdrug, one of Britain’s largest beauty and health retailers, has introduced contactless payment for its in-store customers, according to Retail Gazette.

Created by Streamline and Visa Europe, the contactless system will enable customers to make payments of up to £15 (approx. USD $23) by simply waving their contactless bank card at the more than 50 participating Superdrug stores in London and Liverpool.

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Australian supermarket chain Coles is gearing up to launch contactless payments in stores by mid-2012, according to CNET Australia.

Despite expressing misgivings about NFC security back in August, Coles says they will go ahead with a payment terminal roll out that will see customers making contactless purchases of $100 or less.

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Sticking to its plan for a contactless rollout in 2012, Australian retailer Coles has selected Ingenico to provide its Ingenico iPP350 contactless payment terminals.

According to finextra.com, the Aussie retailer first piloted the technology in September 2011, and has since decided to expand. All business groups will deploy the new iPP350 across 24,000 lanes within the next few months, making the retailer one of the first in Australia to offer the contactless payment option.

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Research and Markets announced the addition of a report concerning the latest state of the Polish contactless payment market.

Entitled “Polish Contactless Payments Market 2011: Issuance, Transactions and Innovations” the report presents detailed analysis based on surveys carried out among all banks issuing contactless payment instruments and acquirers that operated contactless payments on the Polish market.

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The UK’s YESpay International and YES-wallet.com have teamed up to build an NFC-enabled cloud-based mobile payments platform.

By integrating the YES-wallet Pouch digital wallet with YESpay EMBOSS payment service, the companies will provide a platform that encompasses e-Money, pre-paid and gift-card payments based on Visa PayWave and MasterCard PayPass contactless standards.

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