Credit card companies pushing for contactless payments

Major credit card companies across the UK are pushing for the advancement of contactless payments saying the innovation in technology would help push for the realization of a cashless society.

A contactless payment system could also translate to more transactions using credit cards.

Visa’s PayWave and MasterCard’s Payless technologies are leading the modernization in the industry and thus pushing the popularity of swiping cards across a reader even to pay for small purchases.

It is no surprise that credit card providers are excited over the development.

Steve Perry, executive vice-president of Visa Europe, said that the current trend that is sweeping not only the UK but also the entire credit card industry has also helped increase credit card transaction. Before, consumers are reluctant to use their credit cards for purchases under £5.

“Contactless is as revolutionary as the shift to internet payments was five years ago,” he said.

Perry predicted that the advancement in contactless payment would soon achieve the realization of people not carrying coins in their pockets to make small purchases.

“It will mean having no notes and coins – it will certainly mean having no coins. It will move us almost to a cashless society,” he added.

At the same time, Visa Europe said it expected this year to provide the “tipping point” for consumers to shift to debit and credit cards over cash. It said the number of cards holders in the UK to reach between 5 million and 15 million.

Barclaycard said that credit card payments in the UK reached to an estimated £4.085bn on a year-on-year between December 19th and 31st 2009 or a rise by 2.4%.