HSBC to Use Contactless Cards as Their Standard for All Customers
- HSBC is moving over to contactless technology, and as from this month, is replacing all debit cards due to expire with the new chip cards.
- Holders of such cards will be able to make purchases at various points of sale equipped with contactless readers for amounts of up to £20 (instead of £15) from the 1st of June.
- The London Olympics venues will also be equipped with compatible terminals.
Source: Finextra
- All of the major Britlish banks have decided to roll out contactless payment technology. According to Visa Europe, 20 million contactless cards are already in use in the United Kingdom. This number is expected to increase to 30 million by the end of 2012. At the same time, the number of terminals installed is also rapidly increasing.
- The positive impacts of this technology attracting the attention of both retailers and issuers: checkout time is reduced when compared to traditional means of payment (up to 50% faster) and cards are increasingly being used for small purchase amounts (MasterCard Canada reports a 25% increase in transactions).
- The rate of use of contactless payment solutions increased from 12 to 32% in fast-food restaurants across England when McDonald’s introduced their contactless payment terminals. According to a user study carried out by Visa Europe, it was noted that the widespread adoption of contactless means of payment very much depends on how well banks market their solution before and after their cards are introduced.