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Contactless Cards - Tentative Steps Product Image

Contactless Cards - Tentative Steps

  • Published: February 2011
  • VRL Financial News Publishing

Proclaimed as the development that will transform how global consumers pay for goods and services, contactless payments are currently a hot financial topic. In this report, we investigate the extent to which different markets around the world have developed to date, and provide analysis and insight into how they will develop over the next two years.

Data rich and full of previously unpublished case studies from around the world, the report profiles both regionally-focused contactless schemes like Hong Kong’s Octopus, and the global solutions provided by payments giants Visa and MasterCard. Retailer initiatives and the progress of new products are also profiled to provide the reader with a view of the development of contactless from a range of perspectives. The likelihood of the development of contactless payments using other devices, such as the mobile wallet, is also considered and developments in this area of the market are discussed.

The payments industry appears to be pushing the development of contactless payments, but the situation is very much ‘chicken and egg’. Card issuers like Barclaycard and Bank of America are issuing the contactless-enabled READ MORE >

Chapter 1: Introduction to contactless payments
1.1 Definition of contactless payments
1.2 The decline of cash
1.3 Contactless payment security
1.4 The technology involved in contactless payments
1.4.1 On Track Innovations – providing an alternative to payment-enabled handsets
1.4.1.1 OTI’s current business relationships
1.4.1.2 The importance of contactless infrastructure is key
1.4.1.3 A lack of commitment from large retailers
1.5 Is the mobile wallet the future of contactless payments?
1.6 Summary

Chapter 2: Worldwide contactless card schemes
2.1 The technology behind the schemes
2.2 Brief histories of Visa and MasterCard2.2.1 Visa
2.2.2 MasterCard
2.3 PayPass and PayWave location-based trials
2.4 National retailer rollouts
2.5 Sponsorship of major events will build consumer awareness
2.5.1 PayWave expansion forecast in 2011 for the UK in particular
2.5.2 Progress of PayPass trials
2.5.3 Consumer education is an important factor in contactless adoption
2.6 Summary

Chapter 3: Contactless cards and payments in the US
3.1 Debit cards are driving payment growth
3.2 Migration to chip and PIN in the US
3.2.1 Pressure from some retailers for EMV migration
3.2.2 The consumer benefits of EMV are also clear
3.2.3 Cost and complexity are the big inhibitors of EMV adoption in the US
3.3 Interchange fees under review
3.4 Mobile payments – trials and fragmentation
3.4.1 Visa and DeviceFidelity
3.4.2 Smartphone ownership is increasing
3.4.3 The potential impact of Google Android
3.4.4 Further developments in US contactless mobile payments
3.5 Summary

Chapter 4: Contactless cards and payments in Europe
4.1 Specific developments in Europe
4.2 Forecasts for the growth of European contactless payments in 2011
4.3 Developments in the UK
4.4 Transport for London’s Oyster card
4.5 Barclaycard – driving issuance of contactless cards
4.5.1 ‘Too much too soon’ for consumers?
4.5.2 Awareness remains low amongst consumers, despite ATL advertising
4.5.3 Barclaycard OnePulse
4.5.4 Barclaycard contactless mobile payments
4.5.5 The future of contactless payments
4.6 SPAR – taking a calculated gamble on contactless payments
4.6.1 Regional acceptance of contactless payments
4.6.2 Challenges of contactless implementation
4.6.3 Security concerns
4.6.4 Benefits to SPAR stores
4.7 Contactless mobile payments in Europe
4.8 Contactless mobile payments – the Spanish experience
4.9 Everything Everywhere – the latest contactless mobile development in the UK
4.10 Garanti Bank of Turkey – enthusiastically embracing contactless technology
4.10.1 From trial to commercial roll out
4.10.2 Security concerns are not an issue for Turkish contactless mobile consumers
4.10.3 The ingredients for success in contactless payments
4.10.4 Merchant acceptance across Turkey
4.10.5 The future of mobile payments in Turkey
4.11 Summary

Chapter 5: Contactless cards and payments in Asia Pacific
5.1 Octopus – expansion beyond transport
5.1.1 The development of Octopus
5.1.2 Limited international expansion
5.1.3 The technology behind Octopus
5.1.4 Octopus acceptance
5.1.5 Octopus card types and form factors
5.1.6 Future issues and challenges facing the scheme
5.2 Other developments in the Asia Pacific
5.2.1 South Korea – strong contactless mobile growth is forecast
5.3 Japan and Malaysia
5.4 Singapore, Hong Kong and Taiwan – cards fuelling growth
5.5 Add-ons – an interim solution to accelerate contactless mobile adoption?
5.6 Summary

Chapter 6: The future of contactless cards and payments
6.1 Contactless payments are cash replacements
6.2 Big retailers are in no rush to adopt contactless
6.3 Speed through checkout is still a focus for larger retailers
6.4 Without the large retailers, market share of contactless will be negligible
6.5 Merchants are unlikely to bear the cost of contactless adoption
6.5.1 Support has been shown by payment processors and card issuers
6.5.2 Government support has been important in other regions
6.6 Contactless mobile payments are the future
6.6.1 Complexity is restricting the development of contactless mobile payments
6.6.2 Add-ons as an interim solution
6.6.3 New market entrants are challenging the traditional payment model
6.7 Summary

Sarah Richardson-Clarke is a specialist cards and payments author. She has worked for a number of financial services organisations, including GE Money and Mintel where she was responsible for providing insight and analysis. She has an M.Phil from the University of Durham.

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