Contactless Smart Cards, RFID, Payment, Transit and Security

London NFC trial goes well

Wednesday, September 3, 2008

Seventy-eight percent of participants in London’s near field communication trial said they would use the technology again, according to a Finextra news report. The six-month pilot was run by mobile operator O2 with Transport for London, device manufacturer Nokia, and card issuer Visa and TranSys, the group that runs the Oyster card system.

The conglomerate gave 500 Londoners NFC-enabled devices that could be swiped across Oyster card readers in London Underground stations and in buses. Barclaycard also credited 225 of the 500 phones with $350 worth of non-reloadable funds for making low value contactless payments at retailers, including Books Etc, Chop’d, Coffee Republic, EAT, Krispy Kreme, Threshers and YO! Sushi.


The pilot was conducted between November 2007 and May 2008 and found that nine out of ten participants were happy using NFC technology. The Oyster functionality was also popular with 89% of participants saying they would use this service and 87% saying the availability of the service would influence their purchase of a new phone.

Participants said convenience was the main benefit of the system, but some would like to be able to manage accounts and view Oyster and Barclaycard balances through the application.

O2 wants to bring together an industry working group to work on bringing NFC to everyday life.

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Oracle has released a new version of Oracle Retail Point-of-Service that aims to increase security, operational efficiency and functionality in part by integrating biometrics.

Oracle partnered with DigitalPersonal to add integrated biometrics to the POS package. Users of the software will login using their fingerprint, which will replace the need for PINs or passwords. This feature intends to reduce fraud by eliminating the possibility of unauthorized employees using a manager ID or swipe card to access the POS and approve overrides.

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Absa, the largest consumer bank in South Africa, has announced an internal trial of NFC-enabled contactless payments, according to IT News Africa.

Scheduled to kick off later this month, the pilot will see 500 Absa employees equip their BlackBerry smart phones with NFC-enabled MicroSD cards that can be used to make contactless payments.

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In the hopes that mobile wallets and contactless payments will catch on with consumers, mobile phone and financial services firms are looking to next year’s Olympics in London as a tipping point.

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Superdrug, one of Britain’s largest beauty and health retailers, has introduced contactless payment for its in-store customers, according to Retail Gazette.

Created by Streamline and Visa Europe, the contactless system will enable customers to make payments of up to £15 (approx. USD $23) by simply waving their contactless bank card at the more than 50 participating Superdrug stores in London and Liverpool.

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Intesa Sanpaolo, Italy’s largest financial institution, has begun a commercial trial of SIM-based NFC mobile payments, reports NFC World.

The service, dubbed “Move and Pay,” is being tested among 600 Intesa Sanpaolo employees and customers in Milan and Turin, as well as by two academic institutions: The Polytechnic Institute of Milan and Turin ISMB.

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Globus Supermarkets in the Czech Republic has plans to equip all of its stores with contactless point-of-sale (POS) terminals, following a successful NFC payments trail conducted in conjunction with Telefónica O2, Komerční Banka, Citibank and Visa Europe.

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