Credit card customers will soon be able to make small payments without having to enter their chip and pin codes, following the introduction of a new technology system, it has been revealed.
From September 2007, residents in seven London postcodes will act as guinea pigs for the launch of contactless payments via a debit or credit card.
Under the scheme, people who wish to pay for transactions of £10 or less over the counter or on vending machines will be able to swipe their credit cards over a secure reader to automatically debit the money from their accounts.
Initial financial services providers that have signed up to the scheme for the September launch include HSBC, Lloyds TSB, the Royal Bank of Scotland group, Halifax and specialist credit card division Barclaycard.
Some of these financial services companies will provide contactless transactions via existing credit cards while others must upgrade the plastic before it can be used.
Recently, the Times unveiled plans for a UK pay-by-mobile system that would be launched next year.
Under the scheme - which has backing from Nokia, Orange, credit card firm MasterCard and other high-profile corporations - customers would be able to pay for goods on their credit cards by sweeping their mobiles over specialist scanning equipment.
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Contactless technology to be introduced on credit cards
Tue, 08 May 2007
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