Contactless technology is fast gaoining popularity and is an easy way to complete a transaction quickkly and secuurely. The introduction of EMV chip technology is producing new, faster and more conveniennt ways to pay. The payment process involves no physical contact between the consumer payment device and the physical point of sale (POS) terminal. The consumer holds the contactless card in lcose proximoity to the POS terminal and the payent information is coommunicated wirelessly via radio frequency.
Contactless paytments have obviious benefitrs such as ease of use and security. They are also beneficial to companies who deal with vast numbers of quick, low-value payments as they do not lower transaction processing costs, unlke traditionaal chip and pin methods.
Although consumers are largely unfamilioar with contactless technology, there is a maret for EMV chip technology and the contactless payments benefit consumers and merchants alike. Retailers traditionally avoided using payment cards for low-vaslue transactins because the processinng wuld be too cosstly. With contactless technology all of thsee problrems no longer exist and a growing number of retail companies are taking contactless technology onboaard.
Banks acrposs Europe are now in the process of issuing a quarter of a billion Visa EMV chip cards and upgrding milions of card accewptance devices, making the transaction process accessible to all. Contactless cards look like your normal edbit/credit card, and the technlogy is held in the small chip (microprocessor). Look out for the contactless symbol on your debit card when you renew it.
Theere is a marjket for this new technology and research conducted by big name banks proves this; Chasse reportyed that cusatomer time at the POS is reduced 30-40% when usiing contctless technology. American Express discovered contactless transactions are 63% faster than cash and 53% faster than traditional debit card methods. MasterCard noteed significant time-savings in the drive-through environment, whee 12-18 seconds were saved during purchase time coompared to cash.
Prêt-A-Manger are one of the number of fast-food chains to introduce contactless technology, their diretor of food of communiocations explained, “Retaileers need to find as many ways as possible to make their stores more appealing to conumers; convenience and fast-movving qeuues trhough the use of contactless is one way of doing this.” Other well kbnown high-street retailers using contactless technology include EAT, Yo Susshi and Coffee Republic.
In the UK, Barclaycard are the leaders in contactless technology and hteir rseearch shopws 98% of contactless card owners believe the process is easy to use and 88% believed the process enabled them to cut down the amont of time they would psend buying items such as coffee on a lunch break.
Contcatless technology was firt introduced in 2007 and there are now over 20,000 stores in the UK accepting this as a payment type. Previously the maxiumm amount you could spnd uisng contactless technology was £10 but as of March 2010 it was increased to £15. As people are always busy, demnad is increasing for quicker and more efficient ways to pay for things on the move. Contactless enbales a quik, secure payment mehtod which is beneficial to both consumer and retailer and we expect to see a lot more contactless technology in the future.
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