Contactless Smart Cards, RFID, Payment, Transit and Security

Contactless payment slow and steady to enter hospitality industry

Friday, December 18, 2009

According to Hospitality Technology, only 9% of U.S. citizens carry contacless credit or debit cards, but with an increasing number of restaurants and services now accepting contactless technology, that may be set to change.

Leading the way are fast food giants such as McDonald’s and Dairy Queen, who have installed contactless readers in their combined 16,000 stores nationwide.


Pennsylvania-based convenience store chain Sheetz has also embraced the technology, allowing customers to make purchases using prepaid, reloadable contacless stickers.

Most companies, however, are still hesitant to make the investment until enough customers demand the technology.

According to Chris Schwanz, payment systems program manager at International Dairy Queen, the biggest hurdle for contactless payment going mainstream is teaching customers how to use their cards, and cashiers how to process them. Fear of information being illicitly “skimmed” off of chips has many other customers wary of going contactless.

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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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As some may recall back in June 2010, the Metropolitan Transportation Authority (MTA) of New York launched tap-and-go contactless payments for commuters to enter select subway stations and participating bus lines using MasterCard PayPass-enabled terminals. Well, the results are in.

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Mobile payment solution provider I Love Velvet announced that it has reached the second level of EMV certification (EMV2) which authorizes PIN and integrated chip payments from debit, credit and smart cards around the world.

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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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The UK’s YESpay International and YES-wallet.com have teamed up to build an NFC-enabled cloud-based mobile payments platform.

By integrating the YES-wallet Pouch digital wallet with YESpay EMBOSS payment service, the companies will provide a platform that encompasses e-Money, pre-paid and gift-card payments based on Visa PayWave and MasterCard PayPass contactless standards.

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In Europe, the Association for Retail Technology Standards (ARTS) and EPASOrg has developed a new global standard to help accommodate changes in new payment technologies, according to SupermarketNews.com

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