More banks now introducing contactless credit cards payment systems

9 November 2009

The contactless credit cards payment system is being launched in various avenues across the country with mixed results, although plans remain to implement this technology in more venues.

The contactless credit cards system is meant to bring a new face to the way small businesses and transactions can be made with credit cards, saving time and effort for both merchants and consumers. Basically, for transactions under the value of $100 a customer can now simply wave their credit over a contactless terminal, with protection and security being the EMV chip installed on some credit cards. Meaning no signature or PIN is required.

The only credit cards that are able to be used are Visa paywave or Mastercard Paypass credit card enabled cards.

Apparently, Australian banks have invested a number of years developing the technology with them all now beginning to launch with fast deadlines, aimed at spreading the popularity of the contactless credit cards option nationwide.

National Australia Bank has already commenced it trial of the contactless system with Commonwealth Bank having completed an 18 month trial with 200 terminals having been used in retailers.

It was recently announced that the Commonwealth Bank will begin installing these contactless terminals, the current figure to be 2,000 units, across a number of businesses including Melbourne's Etihad Stadium. The stadium was selected as a premium testing ground for this technology to handle the rapid rise and fall in demand that occurs during sporting events, such as half time.

Other planned outlets for the CBA's contactless terminals are a number of IGA supermarkets and Red Rooster stores, with possible tens of thousands of these terminals to be rolled out over the next twelve months, according to CBA executive general manager business products and development Kelly Bayer Rosmarin.

"We plan to have more than 2,000 terminals by the end of the year and with a terminal base of more than 160,000, we have the potential for tens of thousands of acceptance points to be installed in the next 12 months," Bayer Rosmarin said.

To date, around 500 merchant stores have been equipped with the contactless technology since September by National Australia Bank and Visa for the use of customers with NAB Visa payWave-enabled cards. The overall response from the trial has been somewhat shaky with confusion being reported by some customers and merchants.

ANZ bank has also announced its plans to roll out over 350 units at 7-Eleven convenience stores.

National Australia Bank has promise to build on the already rolled-out number of terminals, with a planned total of 2,500 by the end of 2009.

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