Smart cards that will halt need to queue
Ireland’s big banks are looking at implanting laser and credit cards with a radio chip so cardholders can simply wave their cards over a scanner at the till for small purchases.
Shoppers have to queue with their goods, get their cards swiped through a reader by a shop assistant before keying in their PIN number and leaving the store.
But thanks to new “contactless” technology they will be able to wave their cards over an automatic radio reader, which will deduct the amount from their bank accounts, before leaving the store without queuing.
The Irish Payment Services Organisation (IPSO), which represents the banks, says the scheme could come to Ireland next year following successful trials in Britain.
“From reports that I have seen, merchants such as McDonald’s would see this as a way of speeding up payment and reducing queues,” said organisation spokeswoman Úna Dillon.
“It’s something we are looking into at the moment though it won’t mean an extra card in people’s wallets as it will be a new service on an existing card.”
In Britain, the cards are due to be tested in public in London from the autumn to get feedback about how useful the new scheme is.
Consumers will be able to use the new cards in shops, and a variety of other outlets and even at vending machines.
Cards will have a limit of sterling £10 (€15) per transaction and work by being passed within 10cm of an electronic reading device linked to a till, into which the price is punched in by an assistant or the shoppers themselves.
As a security measure customers with the new “contactless cards” will from time to time be asked to enter their PIN in the same way they do with their normal debit or credit cards.
In Ireland, retailers who accept cards such as laser stipulate minimum spending levels such as €5 a transaction due to banking fees, but the new cards can be used for smaller purchases such as a loaf of bread or newspaper without incurring high fees.
If successful the scheme will be introduced across Britain in 2008 with Irish banks looking to bring in the same system next year.
The payment services group said the new cards were part of its remit to get more consumers to carry out electronic or cashless banking.
The usage of cheques in Ireland is the third highest in Europe, despite the higher processing costs incurred by banks compared with laser transactions.
“We want to make electronic banking acceptable to more people and “contactless cards” are one way of doing this,” said Ms Dillon.
