MBNA launches contactless credit cards for UK consumers

By 2011, five million MBNA-issued credit cards are expected to have contactless technology, in addition to the roughly ten million contactless-enabled credit and debit cards already in use on the UK market. On the whole, the total of contactless technology users in Britain is expected to reach 25 million by 2012, a recent survey conducted by MBNA has predicted.

According to the survey, 80 percent of polled consumers said contactless technology would be faster when paying for small-value items, while 69 percent of respondents consider that this service targets both consumers and businesses.

How it works

In order to use the contactless cards, consumers have to touch the card at payment terminals that display the contactless symbol, without entering their PIN. However, on first use and occasionally, a PIN is required, due to enhanced security capabilities. In addition, when reissued, new and replacement cards are set to automatically convert to contactless technology. Moreover, contactless cards are set to be compatible with both MasterCard and Visa payment systems.

Some of the retailers that have already installed contactless payment terminals are Subway, Prêt a Manger and Caffé Nero. In addition, contactless technology has been under trial for several other retailers, such as Co-op, Boots, Spar, National Trust gift shops and Little Chef restaurants.