Loose change could be a thing of the past

| September 6, 2007 | 0 Comments

The days of scratching around for coins in your handbag or pocket to buy a newspaper or sweets could be numbered. 16% of people said they often do not buy daily items such as a coffee or a newspaper because they do not have change or do not want to break into a note.

Consequently, MasterCard has launched a new generation of ‘Tap & Go’ cards which allow people to purchase items costing under £10 simply by touching a chip card against a reader.

HSBC bank and retailers such as McDonald’s and Coffee Republic have already signed up to use the MasterCard system, which is called PayPass. It has been introduced in certain parts of London and will be rolled-out to the rest of the capital later this month with the remainder of the UK in 2008. It is expected that 5 million of the cards will be issued by the end of 2008 and will be recognised by 100,000 retailers.

PayPass works in a similar way to the Oyster cards which are used by London commuters but instead of needing to be topped up with credit at a terminal, the cards allow money to be deducted from the user’s bank account or added to their credit card bill.

MasterCard expects that the cards will reduce queues in fast-food outlets, newsagents and coffee shops. Their research established that 53% of consumers were enthusiastic about the cards’ convenience and swiftness.

Furthermore, the Barclaycard One Pulse is on the way which is a rival ‘contactless’ card.

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