Contactless Smart Cards, RFID, Payment, Transit and Security

SCA: Best practices for promoting contactless payments

Thursday, September 3, 2009

The latest research from the Smart Card Alliance’s Contactless and Mobile Payments Council has identified issuer and merchant best practices for driving consumer use of contactless payments.

The council studied the effectiveness of certain issuer and merchant activities in marketing, promotion and consumer and employee awareness to determine the best way to make consumers more knowledgeable about contactless payments and how to use the technology.


Best practices mentioned in the white paper include: providing basic information on benefits and on how and where to use the cards; targeting cardholders by demographics; creating “buzz;” identifying champions for contactless benefits; creating incentives; and using multiple communication vehicles to deliver key messages.

The white paper, “Issuer and Merchant Best Practices: Promoting Contactless Payments Usage and Acceptance,” is available for download here.

“Over the past five years, contactless payment has had the fastest deployment and acceptance of any emerging payments technology in recent memory,” said Randy Vanderhoof, the alliance’s executive director. “Though acceptance continues to rise, we need to look at the next steps in advancing the technology. The goal of this white paper is to outline the best practices necessary for the industry to move past the early adoption phase and prepare the payment infrastructure for the next innovation in proximity payments – NFC-enabled mobile phones.”

The white paper also includes best practices for other industry stakeholders, such as acquirers, processors, vendors, payment brands, and industry associations, all who “need to be engaged and coordinated to play a role in making contactless payments a success,” added Vanderhoof.

Some of the participants involved in the development of the white paper and in the issuer survey included Discover Financial Services, First Data Corporation, Giesecke & Devrient, IBM, INSIDE Contactless, MasterCard, Oberthur Technologies and VeriFone. [end] 

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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Proxama has announced a partnership with semiconductor supplier ARM Holdings to create secure payment mechanisms for mobile handsets.

The UK-based partners say they will combine ARM’s TrustZone technology with Proxama’s Mobile Wallet to develop a “highly secure” environment for NFC-enabled mobile contactless payments and mobile internet payments.

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Datacard Group, a provider of secure ID and card personalization solutions, has announced an equity investment and strategic partnership with DeviceFidelity, makers of the In2Pay mobile payments solution.

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The European Payments Council (EPC) has published the second edition of its “White Paper on Mobile Payments.”

According to EPC, the white paper focuses on the usage of the mobile payments in the Single Euro Payments Area (SEPA) and explores how m-payment services can be delivered through cooperation between service providers in the payment industry and players within the mobile ecosystem.

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A new survey from Euro Kartensysteme shows that Germans are starting to embrace the idea of contactless and NFC payments.

Out of 1,040 Germans aged 18-59, 43% responded that they would like to make contactless payments if given the opportunity, of which 58% percent would make their payments with a debit card card, 41% with a credit card and 50% with an NFC phone.

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Ed McLaughlin, MasterCard’s head of Emerging Payments, has some good news for those waiting on NFC-enabled phones for contactless payments.

In an interview with Fast Company, McLaughlin said that he didn’t know of a handset maker who wasn’t working on integrating support for PayPass contactless payments.

read more »

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