What is contactless?

Contactless is a new feature being introduced on payment cards to make purchases quicker and more convenient for both retailers and consumers. For transactions of £10 or less customers will simply hold their contactless card up to a secure reader to make their payment.

Contactless cards will be secured by the same advanced technology that underpins chip and PIN. Though the card would not usually require a PIN to be entered, from time to time a chip and PIN transaction will be requested. This is designed to deter fraudulent use should the card be lost or stolen; each time a PIN is used it re-affirms that the cardholder is in possession of their card.

Contactless payments will make purchases quicker and more convenient for both retailers and consumers.

How can I get a card?

Depending on your card company, contactless technologycould be added to your existing credit or debit card when it is re-issued, or you could even be offered a separate contactlesscard. Cardholders do not need to do anything: they will be contacted by their card company and given full details if and when they join the rollout.

What makes my contactless card secure?

Contactless cards are secured by the same advanced technology that underpins chip and PIN. Though using a card through the contactless interface does not routinely require a PIN to be entered, the chip on your card will track activity for security purposes, and from time to time you will be prompted to enter your PIN.  This security feature is designed to confirm that you are in possession of the card, and deter and limit any potential fraudulent use should the card be lost or stolen. Each time a PIN is used it re-affirms that the cardholder is in possession of their card.

Where is the launch taking place, and what are the plans for national rollout?

The first stages of the launch took place in seven London postcodes - (EC2, EC3, EC4, E1, E14, SE1, SE16) from the City to Canary Wharf from September 2007. Activity has already expanded beyond the launch zone, and more retailers are adopting all the time.

New i ndustry estimates suggest that over 5 million contactless cards will be issued by the middle of 2009, and that they will be accepted in approximately 100,000 outlets.

Where will I be able to use my contactless card?

Cardholders should look out for the internationally agreed acceptance mark, which is located at the most effective part of the contactless reader, indicating where the cardholder should hold their card.

The introduction of contactless is expected to attract new sectors that traditionally have not accepted card payments. There are expected to include: fast food, sandwich shops, coffee shops, vending machines, car parks, supermarkets, pubs, transport outlets, taxis etc.

To find out more information about contactless, including where contactless cards are accepted, visit either MasterCard www.mastercard.co.uk/paypass or Visa www.visapaywave.co.uk.

Can contactless itself be used to develop new products and services?

In theory contactless payments do not have to be made using a card.  In other parts of the world mobile phones or key fobs have been used.  However, the focus of the UK rollout is on contactless cards. 

What is APACS’ involvement?

The rollout of contactless technology in the UK is being led by the global card schemes MasterCard and Visa.  APACS, the UK payments association, has been involved on non-competitive issues to support the rollout.

Page last updated June 2008.