Research carried out on Barclaycard’s behalf predicts that £3 billion worth of purchases will be made with mobile devices in the UK by 2016. and the card provider is hoping that UK customers will attach the extra card to their mobile phones and use them at “contactless” terminals for everyday purchases.
This wave-and-pay technology has been in place for a few years and allows cardholders to spend up to £15 at certain stores, without entering a Pin with devices which feature NFC (Near Field Communication) technology.
Once attached, the PayTag can be used to make payments of £15 and under, rising to £20 in June, by simply being held over a contactless payment terminal.
The Barclaycard PayTag is initially being offered to a group of customers who will receive letters in the coming days. The card is one third of the size of a standard credit card, with a sticky reverse side so that it can be attached to a mobile.
It will be sent without charge to customers who request it and will come in addition to their regular credit card.
The credit card provider believes that people should stick it to the back of their mobile phone handset because most adults carry their phone with them at all times. Cardholders may choose to attach it to their wallet or a key ring, instead.
The announcement comes as Visa predicts that the number of contactless point-of-sale terminals in the UK will rise by 50% to 150,000 this year. Major retailers that offer, or are introducing, contactless include Waitrose, McDonalds, Boots, WH Smith and Tesco. By the end of 2012, London buses will also accept contactless payments, followed by the Tube and the rest of the transport network in the Capital in 2013.
