If contactless payments are a drug, are retailers ready to provide the fix?

27 February 2015

Name one breakthrough payments technology over the past 18 months, and chances are you’ll choose contactless payments. Touch and go technology might have been available for several years, but only during this recent period has consumer adoption levels taken off – and goodness, how it’s taken off!


In a recent Financial Times article, journalist Lisa Pollack likened contactless payments to a drug, which the UK is becoming increasingly addicted to; £2.3 billion was spent through contactless cards in 2014. Contactless makes paying by card irresistibly convenient – and this is a double edged sword for retailers and hospitality vendors.


Today contactless payments are the only really frictionless way to pay, and there is no doubt that currently contactless transactions are quicker than traditional chip and PIN payments. The main reason is that the vast majority of transactions are being completed offline, plus the customer doesn’t need to enter their PIN.


Those without contactless should note that new regulations are being introduced over the coming months. The good news is that the £20 limit is being raised to £30 in September; the not so good news, is that, from 1st January 2016, all new Point of Sale (PoS) / PIN Entry Device (PED) / Point of Interaction (POI) deployments are required to feature contactless capabilities.


Now, whilst it should be noted that contactless poses no greater a fraud risk than using Chip and PIN cards for the retailer, the rise in card transactions being processed will increase the strain on payment networks. Especially as Visa will ask for all its cards to be authorised online later this year, and MasterCard is expected to follow suit.


As these new developments try to nail the coffin closed on cash, retailers and hospitality vendors must ensure their network is resilient and robust enough to be always on and quick enough to respond to the changing face of the digital payments landscape. Are you ready to provide ‘the fix’? We are!

If contactless payments are a drug, are retailers ready to provide the fix?

Name one breakthrough payments technology over the past 18 months, and chances are you’ll choose contactless payments. Touch and go technology might have been available for several years, but only during this recent period has consumer adoption levels taken off – and goodness, how it’s taken off!


In a recent Financial Times article, journalist Lisa Pollack likened contactless payments to a drug, which the UK is becoming increasingly addicted to; £2.3 billion was spent through contactless cards in 2014. Contactless makes paying by card irresistibly convenient – and this is a double edged sword for retailers and hospitality vendors.


Today contactless payments are the only really frictionless way to pay, and there is no doubt that currently contactless transactions are quicker than traditional chip and PIN payments. The main reason is that the vast majority of transactions are being completed offline, plus the customer doesn’t need to enter their PIN.


Those without contactless should note that new regulations are being introduced over the coming months. The good news is that the £20 limit is being raised to £30 in September; the not so good news, is that, from 1st January 2016, all new Point of Sale (PoS) / PIN Entry Device (PED) / Point of Interaction (POI) deployments are required to feature contactless capabilities.


Now, whilst it should be noted that contactless poses no greater a fraud risk than using Chip and PIN cards for the retailer, the rise in card transactions being processed will increase the strain on payment networks. Especially as Visa will ask for all its cards to be authorised online later this year, and MasterCard is expected to follow suit.


As these new developments try to nail the coffin closed on cash, retailers and hospitality vendors must ensure their network is resilient and robust enough to be always on and quick enough to respond to the changing face of the digital payments landscape. Are you ready to provide ‘the fix’? We are!