19 April 2012

Latest innovation in ‘contactless’ payment technology unveiled

A new mini stick-on credit card has been unveiled as the latest innovation in ‘contactless’ payment technology.

Around a third of the size of a standard credit card, the free Barclaycard PayTag has a sticky reverse side which allows it to be attached to the back of a user’s mobile phone.

The device can then be waved in front of a ‘contactless’ payment terminal to make everyday purchases of up to £15, without entering a Pin. This limit is set to rise to £20 in June.

Tesco and Boots are among the major retailers which currently provide ‘contactless’ payment devices, while McDonald's has also confirmed its intention to introduce the technology.

The new PayTag is initially being sent to those Barclaycard customers who request it, although the scheme is set to be rolled out to ‘millions’ of customers at a later point.

While some experts have expressed concerns over the security of ‘contactless’ payment technology, Barclaycard insists its new PayTag is ‘safe and secure’ and comes with ‘the same 100% fraud protection as any Barclaycard’.

Visa said it expects the number of ‘contactless’ point-of-sale terminals in the UK to rise by 50% to 150,000 in 2012.

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