Wednesday 12th September 2007
London recently saw the launch of PayPass, a new pin-free payment system of debit and credit cards from Mastercard.
Transactions of less than £10 are to be handled by the new cards without the need for the customer to enter their pin, in an effort to reduce queueing times, according to Mastercard.
"Were simply responding to consumer need for speed and convenience, especially at busy times of day," Mastercard head of strategy and business Oliver Steeley explained to the BBC.
"You cant stand in the way of progress," he added.
Mr Steeley asserts that fears of an increase in fraudulent activity are unfounded as only five transactions may be made before the user is required to enter their pin.
Barclaycard this week followed up with the launch of its own contactless payment system, OnePulse.
The three-in-one product combines credit card features with cashless pin-free payments of less than £10, as well as incorporating Oyster technology used on London transport networks.
"This is the first UK credit card of its kind," claimed Barclaycard chief executive Antony Jenkins at the launch.
"Barclaycard OnePulse will make life easier and more hassle-free for those who live and work in and around London."
Mastercard plans to extend coverage of its PayPass network to the remainder of the UK in 2008, the company reveals.
In April, the firm announced that a pin-free purchase had been made at a McDonalds in Switzerland - the first such transaction to take place at the restaurant chain outside of the US.
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