Barclaycard has taken the wraps off its PayTag technology, which is available in the form of an adhesive card that can be applied to the back of a mobile handset. Millions of Barclaycard Visa cardholder customers will now have exclusive access to the payment method.
PayTag is about a third of the size of a regular banking card and is an extension of a customer’s credit card account. Once attached to a mobile phone it can be used to make payments of £15 and under by holding your mobile above a contactless payment terminal. The payment limit is set to rise to £20 in June and is likely configured to restrict the inevitable fraud that will occur when customers lose their PayTag.
As A4u has stated previously, Visa believes 2012 will be the year that NFC comes to the fore. The company predicts contactless point-of-sale terminals in the UK will increase by 50% to 150,000 this year. Waitrose, McDonalds, Boots, WH Smith and Tesco already offer – or are introducing – contactless tills. By the end of 2013, the whole of London’s transport network will accept contactless payments.
CEO of Barclaycard Consumer Europe, David Chan, insists that attaching PayTag to your mobile phone is the obvious choice. “More than half of us say that the item we’re most lost without is our mobile phone,” he said. “So we’re giving people the option of using them to make easy, convenient, everyday payments without the need to upgrade their current handset.”
News of PayTag’s launch follows Barclaycard and Orange’s recent announcement that credit or debit card holders from all UK banks would be able to load money onto Barclaycard’s mobile payments application, using the Quick Tap wallet. Quick Tap is the contactless payment technology that Orange is integrating into its handsets, and the first of these handsets in Android flavour will be showcased in the coming weeks.
Ernst & Young research commissioned by Barclaycard predicts that by 2016, £3 billion worth of purchases will be made using mobile. Voucher affiliates will doubtless be looking to make use of this market.