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Barclays Bank is to roll out a range of wearable payment devices that can be used to make ‘touch and go’ contactless payments across the UK, following the launch of its bPay wristband last year.
The devices can be used by anyone with a UK-registered Visa or MasterCard debit or credit card and be bought online or in high street stores from July.
We discussed Barclays’ offering, how the technology works, the Apple Pay effect, the drivers that will make devices like those from Barclays appealing to consumers, security and confidence in using devices like these, and more.
Interesting times with mobile as trends clearly suggest a continuing move away from cash payments to cashless payments via methods like contactless payment, with further evolutionary (and probably disruptive) effects when Apple Pay launches in the UK in July.
Read more in a report in the Guardian, below, which I referenced in my discussion with Sue.
British shoppers could soon be paying for cups of coffee or trips on public transport by waving a keyfob or sticker, as contactless payment moves into newer wearable devices.
Barclays, which launched payment wristbands last year, is launching key fobs, an updated wristband and stickers that can be attached to any flat surface, including a mobile phone. The bPay devices can be used by anyone with a UK-registered Visa or MasterCard debit or credit card and bought online or in high street stores, including Snow + Rock, CycleSurgery and Runners Need, from next month.
The venture comes as mobile phone companies begin to muscle in on the payment market. Both Apple and Samsung are working on systems to make contactless payments in shops.
Apple launches its mobile payment system in the UK next month, which allows users pay for goods by tapping their phones on contactless card readers in stores. Unlike contactless cards, Apple Pay includes an extra security measure – tokenisation – which ensures that the card details stored on a phone are never passed to the retailer.
Barclays’ bPay band launched in the UK in July last year, but Barclays would not confirm exactly how many people had taken up the original band.
Mike Saunders, managing director of digital consumer payments at Barclaycard, saidcash-dominated transactions were being replaced by contactless technology.
The UK Payments Council recently revealed that cashless payments have now overtaken the use of notes and coins for the first time in the UK.
The bPay wristband, fob and sticker act like a contactless bank card, but must be pre-loaded with cash. Funds can be added online, via a mobile app or by automatic top-up. It is possible to own several devices and manage them separately so that, for example, a child’s pocket money can be loaded onto a sticker or fob.
Purchases of less than £20 can be made waving the band across the merchant’s sales terminal. Transactions of £20 or more require the customer to enter their pin to validate the transaction.
guardian.co.uk © Guardian News & Media Limited 2010