Contactless Smart Cards, RFID, Payment, Transit and Security

Retailers turning to loyalty card schemes amid recession

Tuesday, July 20, 2010

The recession has lead a growing number of organizations to launch smart card-based loyalty schemes in hopes of boosting profits, according to hidglobal.com.

Smart loyalty cards come equipped with contactless technology to offer greater speed and security than ‘non-technology’ loyalty cards, says HID Global.


The consumer end hasn’t been as quick to pick up on the loyalty card trend, however. Recent research from Subway shows that there are currently £5.2 billion worth of unused loyalty card points in the UK alone.

To combat this, some retailers, such as WalMart, have begun “instant issuance” schemes, which involve the use of in-store printers to put loyalty cards in the hands of customers right then and there, encouraging more spending from the consumer and greater profit for the retailer.

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Gemalto has announced that its “Allynis” Trusted Service Manager (TSM) solution has been selected to securely manage transactions on the Isis mobile commerce platform.

Isis, the mobile commerce joint venture between Verizon, AT&T and T-Mobile, will enable U.S. customers to pay, present loyalty cards, and redeem coupons all with a tap of their NFC-enabled phones. According to Sébastien Cano, seniro vice president at Gemalto North America, the TSM solution will enable Isis to securely deliver mobile payments along with a host of NFC services, including access control and mass transit in addition to couponing and loyalty.

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Banks and retailers must do more to increase consumer awareness and usage of contactless card technology, which remains incredibly low among the British populace, according to the latest research from YouGov’s Mobile Wallet study.

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Japanese mobile operator KDDI has announced that it will launch NFC-based commercial services with Japan Airlines, credit card issuers, retailers and loyalty program providers, reports NFC 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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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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UK mobile operator O2 is delaying the launch of its “O2 Wallet” mobile contactless payments, loyalty and transit app due to concerns that it is “not yet offering an adequate customer experience,” reports MarketingWeek.

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