Touch And Pay Card Arrives

We've blogged before about touch and pay cards when we posted about the OnePulse payment card from Barclays. Today we read that Mastercard have launched their PayPass system - a touch and pay card for low value transactions.

The PayPass card is to initially be available in London within the next week and nationwide within the next 12 months. Coincidentally, the OnePulse card is also expected to be introduced next week too.

Whilst there are both supporters and and critics of such cards (convenience v fraud concerns) it's expected that by the end of this year around 500,000 consumers will have a touch and pay card and about 1,000 retailers will have the required terminals to accept the payments.

Barclays OnePulse

Barclaycard's three-in-one Oyster, credit and contactless payment card will be called OnePulse, it has announced. We've blogged before about Barclaycard and Oystercard and this annoucement confirms our suspicions.

The OnePulse card has three separate functions; an Oyster smartcard for travel on the tube, bus and some national rail services; ‘wave and pay’ technology for purchase of low-value items (under £10) and a standard chip-and-PIN credit and debit card.

Expect to see the OnePulse card this Autumn.

No PIN Required

I stopped for a coffee this morning at Pret-a-Manger in Cheshire Oaks with my wife.

She paid for the coffee and cakes by credit card. Interestingly, she didn't have to enter her PIN - apparently transactions under £15 do not require a PIN to be entered at Pret-a-Manger, your card is just plonked into the terminal and the transaction is completed. First time we've had a transaction that didn't require a PIN.

Coffee and cakes were great by the way. Service was fine too. Nearly went to Starbucks but changed our minds after passing a busy Pret.

I've previously talked about the introduction of wave-and-pay cards and whilst todays transaction wasn't exactly that, it does highlight than non-pin card payments are now here!

Wave and Pay

I've read a few reports about Barclaycard jumping in to bed with the company that issues the Oyster Card, Transys. The Oyster Card is used in London I gather as a prepaid travel pass card that is contactless - the card isn't swiped, it's a contactless smartcard that is waved over a sensor and your card is automatically debited for the price of your journey on the train. More than six million Oyster cards are used by Londoners.

Barclaycard are joing forces with Oyster to create a wave and pay card that allows consumers to pay for small value transactions (under £10). For more expensive purchases a PIN will still need to be entered.

Currently, more than 75% of cash transactions are for less than £10, compared with about 20% of credit card transactions.

If the Barclaycard trial goes well in London the new wave and pay card will be rolled out around the UK.