UK Visa has decided to launch contactless ‘wave and pay’ debit cards that would replace low-value cash transactions by end of 2007.
The introduction of RFID enables Contactless debit cards would speed up the monetary transactions. For instance, if a consumer wants to make a payment for the low value transactions like coffee and newspapers (less than 10 pounds), then he can wave his debit card over a reader without signing a receipt or enter a PIN number.
Besides it, the wave and pay system could be helpful for other remote payments like vending machines, road tolls or parking meters.
Visa has already discussed with its members banks for the rollout of new debit card systems. Initially, this system would be introduced in London and spread through out the UK by the end of next year.
