Halifax to issue contactless cards

High street bank Halifax has announced it would begin issuing its first contactless payment cards to customers.

The group said the new Visa payWave debit cards would be sent to around 25,000 customers in London who were taking part in the first phase of its contactless payment roll-out.

The cards will enable customers to pay for items costing up to £10 simply by waving their card in front of a scanner.

The card will also act as a normal debit card for purchasing items of more than £10 and can be used to withdraw cash at ATMs.

The new cards can be used in around 1,000 shops, petrol stations, restaurants and bars in the City of London, including McDonald’s, Coffee Republic, Yo! Sushi and Threshers.

The group plans to roll-out the contactless payment technology across the rest of the UK from the middle of next year.

Paul Marriott-Clarke, head of banking at Halifax, said: “We’re delighted to be at the forefront of this scheme.

“Contactless payment through Visa payWave is quick and convenient - ideally suited to busy cities like London as it is the fastest and most convenient way for customers to pay for their small everyday purchases.”

Barclaycard has already launched one of the cards through its Barclaycard OnePulse, which combines a contactless payment card, credit card and Oyster card.

Last year around 10.4 billion payments of less than £5 were made in the UK, more than 96% of which were made using cash. Payments body APACS estimates that there will be more than five million contactless payment cards in circulation by the end of 2008, with the cards accepted at more than 100,000 retailers.