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to 33 percent of those with payment-
Insider’sreport enabled smartphones. And some big
players are betting use of contactless
on payments payments will increase. Visa and Mas-
tercard are among the biggest bettors.
Are stars aligning for Both card brands have mandated that
new POS terminal deployments in
contactless payments? the United States support contact-
less by mid-2020. At least three of the
largest card-issuing banks – Bank
By Patti Murphy of America, Chase and Wells Fargo
– have plans to migrate their credit
ProScribes Inc. and debit card portfolios to contact-
less cards. Chase has already issued
'm old school: I like using plastic credit or debit cards. The idea of tap- close to 20 million contactless cards,
ping a smartphone against a POS device to execute payments just doesn't according to Abeer Bhatia, president
do it for me. One reason, I suspect, is that I'm not very competent at using of card marketing, pricing and inno-
I a smartphone. I can make calls, take photos, exchange text messages and vation at Chase.
even deposit checks using a mobile device, but not much else.
Visa said upward of 100 million Visa-
I am open to change, however. Ten years ago I never could have imagined branded contactless credit and debit
migrating all of my photo taking or check depositing to smartphone technology. cards will be in Americans' wallets
Nor would I have considered using a contactless chip card to initiate payments, by year end 2019; 300 million by year-
but these days I'm considering it. end 2020. In a May blog post on Visa'
website, Dan Sanford, global head of
A recent survey by Auriemma Research found that 59 percent of contactless contactless payments, stated that 80
card holders have used those cards to make tap-and-go payments, compared of the top 100 U.S. Visa merchants
(in terms of transactions) now offer
consumers the ability to tap and pay
at checkout. He predicted that others
will follow, and along with that so
will consumer adoption.
"As more people get a chance to ex-
perience contactless payments as
part of their daily routines, tapping
to pay will become second nature for
convenience-driven consumers ev-
erywhere," Sanford wrote.
Is mass transit the ticket?
Contactless cards (and mobile pay-
ment apps) use near field communi-
cation (NFC) technology to support
the payment initiation process. Con-
sumers tap their cards or mobile de-
vices against a POS device that's been
programmed for NFC functionality
to activate the process.
There's a big push toward contact-
less credit and debit card usage in
mass transit. In late May, mass transit
customers in New York City got the
option of using Chase-issued contact-
less cards to pay for entry to several
subway stations and bus lines in lieu
of using fare cards. Over time, all
New York City subway stations and
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