The first debit cards are deployed in the U.S. market.
Debit cards comprise 3.08% of total U.S. purchase volume, 16 years after their inception.
The card Associations begin implementing contactless payment trials in quick service restaurants across the United States.
Jupiter Research LLC releases a study on contactless payment, projecting 230 million contactless cards will be distributed in 2007. The study also estimates that 2.88% of all card spending will be on contactless cards.
Debit cards account for more than 36% of total U.S. purchase volume.
In May, MasterCard Worldwide states that using PayPass shaves 12 to 18 seconds off of the transaction time. Chris Skinner of TowerGroup Inc. said "the death of cash" will be contactless payments. By September, the number of contactless cards in use is lower than anticipated. Jupiter projects the number of cards distributed in 2007 will be 37 million, down 70% from its 2004 estimate, and projected spending on contactless cards is lowered to 0.72% of all card spending, more than a 75% drop.
Randy Vanderhoof, Executive Director of the Smart Card Alliance, estimates approximately 1% of U.S. merchants accept contactless payments.
In May, ABI Research estimates there are 150,000 contactless payments terminals in 55,000 retail locations in the United States.
The SCA estimates that, as of June, 21.6 million contactless cards have been issued in the United States in the past two years.
MasterCard states it has distributed more than 16 million PayPass cards and has more than 55,000 merchant locations accepting them worldwide.
VeriFone becomes the preferred provider of in-cab credit/debit card payment systems on the East Coast in August. In September, members of the New York Taxi Workers Alliance (NYTWA) and Taxi Workers Alliance of Philadelphia stage a two-day strike, protesting the use of electronic payment systems in their vehicles. NYTWA stages another two-day strike in October.
Meijer Inc., a supercenter chain combining department stores and groceries, reports that installation of 15,000 contactless payment terminals in 181 of its stores has lifted monthly sales by 44% for customers paying with contactless cards.
More near field communication-enabled handsets will reach the market, and contactless use will expand, according to Vanderhoof.
The total market for contactless payments of $5 or less will reach $11.5 billion, according to a TowerGroup study.
According to Jupiter, 188 million contactless cards will be distributed in the United States.