Cashless Systems
A world without cash? N
We find out more about the technology that is set to change the way we pay...
ick Bate, Managing Director of VMC says you can be excused if you are “more than a little baffled by the hype that surrounds the next generation of cashless payment systems such as contactless bank cards and near field communication (NFC)
on smartphones.” Nick agrees that, “Open payment technologies are seen as the
future, providing consumers with the flexibility to make purchasing transactions faster and more securely,” adding: “The 2012 London Olympics is expected to be a major milestone for this technology with the Olympic Park expected to be a contactless card environment for the duration of the event.” Clearing up the confusion about Near Field Communications (NFC),
Nick explains that this technology “promises to bring contactless payment capabilities to smartphones and is already being heralded as the next major advance with manufacturers such as Samsung, htc, Nokia and BlackBerry having already launched a number of compatible devices. However, since the NFC Forum was formed in 2004, mobile device manufacturers and network providers have made many announcements and, although they have run some interesting pilots, contactless payment using your smartphone in the UK is still some way off. “A major barrier to mass adoption of contactless bank cards and
NFC payment is the cost of rolling out compatible hardware. Security issues that relate to using a mobile phone or contactless bank card as a payment device must also be addressed. Consumers must have the confidence that their personal information is secured. The removal of PIN verification for low value purchases reduces transaction times but introduces the additional risk of fraud, which directly impacts on transaction costs! “The challenge is to deliver the convenience of contactless payment
whilst reducing merchant transaction processing fees, especially for the typical low value purchases made at vending machines.” While new and exciting opportunities may be on the horizon, if we
are to realise them fully, attitudes need to change. Nick agrees: “The vending industry needs to embrace cashless payment to help overcome some of the most common problems that affect the industry. Issues such as jammed coins, cash collection costs, vandalism and theft could all be consigned to the past if the concept can be made to work outside closed user systems. Vending operators need to see the cost of cash handling as a justification for the move to contactless payment technologies and, more importantly, there needs to be a critical mass of users with contactless bank cards and NFC enabled phones.”
14
Speaking exclusively to Vending International, Anna Livermore of MEI adds: “There have been around 18 billion cash transactions for less than £15 in the UK last year, and cashless providers see this as a very attractive segment. There is a lot of coverage of various new schemes and many profess 2012 to be the year of NFC, especially as the initiatives are backed by some pretty big players, from Visa and MasterCard to mobile phone operators such as Orange. Many operators are asking us and themselves whether it is time to invest or 'get on board the cashless bus.” MEI’s advice is:
• Embrace new payment technologies, but keep in mind that they will co-exist with cash
• Look for payment solution integration that will give you the best ROI • Work with a partner who can offer the Complete Payment Solution and be able to advise what approach is best for your type of operation. In 2010, the Payments Council predicted that bank notes and coins
would be used for fewer than half of all transactions within five years. The Way We Pay 2010 report revealed that the use of cash had plummeted in the past 10 years, with chip and pin and contactless cards the preferred payment option. If that's the case, as an industry that prides itself on convenience, we either ride this wave of change or risk being left behind. From chip and pin to contactless cards, pre- loaded cards to keys and payment via smart phones, technology is evolving to offer a range of payment options in a variety of locations. And the benefits don’t stop there, the data generated by purchasing with cashless cards for example, allows for improvements to be made to products and services as a clearer picture of the consumer is created. That said, machines in consumer environments that continue to offer the coin option are vital for those individuals who still prefer to pay by cash.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28