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London Contactless Payment Launch Will Test European Business Models |
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This autumn, the first contactless payment cards will be launched in the UK. Up to 2,000 retailers are targeted to accept contactless payments in London in an initial rollout that will later be expanded nationwide. Major banks and card associations are behind the launch, but contactless payments acceptance will rest on their ability to convince both retailers and consumers of the value of contactless payments.
Worldwide demand for contactless hardware, software, and services to support contactless adoption will reach more than $1 billion by 2012, up from just $260 million in 2007, according to a study by ABI Research. Card associations and issuers see contactless payments as a way to move low-value transactions away from cash and onto cards as well as speed-up transactions for retailers. The UK deployment isn't the first in Europe but its scale combined with the UK's leading European adoption of EMV-based contact smartcards, mean it will be a key test of contactless adoption in the region. Adoption of contactless payments will also bolster the rollout of Near Field Communication, which enables contactless payment - as well as a host of other contactless applications - to operate from mobile handsets. As Europe moves closer to contactless payment adoption, there are lessons to be learned from ongoing rollouts in Asia and the United States where contactless payments are making the greatest headway. Across both regions, contactless payments deployments have been tuned to specific market environments. European rollouts will have to do the same. |
