Financial institutions are interested in issuing contactless card, but obstacles remain, says Bruce Cundiff, an analyst who studies contactless cards at Javelin Strategy and Research in Pleasanton, Calif. Though he foresees a shift toward acceptance of such payments in the next four to five years, barriers remain, including lack of interest in the merchant population, he said.

Interest in contactless credit cards or mobile payments more than doubled from last year, with 12% of banks calling it the biggest untapped growth opportunity, up from 5% in 2007.