A contactless payment system introduced by NAB has begun a commercial roll-out in over 500 Melbourne businesses that eliminates the need for customers to enter a PIN or sign for transactions under $100.
Retailers, including trial participants Sumo Salad and Pancake Parlour, have welcomed the new payment solution, saying it reduces the need for cash to be held on business premises and shortens the length of individual transactions.
The system, which appears similar to a standard EFTPOS unit, is installed near a retailer’s counter. Customers wave a “PayWave” enabled Visa card which contains a special microchip over the unit, which identifies payment information and instantly approves the transaction without need for a PIN or signature.
While transactions under $100 will not require a signature or PIN, transactions made by Mastercard technology over $35 will require entering a PIN or signature.
Each unit contains EMV chip technology that makes payments through radio technologies, encrypted in security codes that are unique to that transaction only, eliminating the risk of fraud.
NAB says it plans to deploy 2,500 units to businesses by Christmas, including locations such as convenience stores, fast food locations, supermarkets and petrol stations.
Luke Baylis, co-founder of Sumo Salad, says the trials have been a success so far, and he hopes to roll out the technology across all the company’s locations.
“This is about time and convenience really, and they have been very effective. Instead of having people spend time paying for their product, it’s instantly processed. We’d like to roll it out across the board, as it reduces the amount of cash on the premises and keeps track of recordable transactions.”
“There are also benefits for the business. If this takes off, it reduces the threat of having people come in and hold the store up. This way money is much more accountable. The only negative, potentially, is that consumers may take time to be comfortable with it and know the transactions are going through in a valid way. But I think don’t think that’ll be an issue as they grow to understand it.”
Visa Australia and New Zealand general manager Chris Clark said in a statement the new system will help all types of businesses in reducing the amount of time needed for payment.
“The lead up to Christmas is the busiest time of the year for retailers, so the ability to serve customers quickly will greatly improve the experience on both sides of the counter,” he said.
“With Visa PayWave, customers don’t need to juggle loose change or even take the card out of their wallet for it to work. We believe contactless payments will transform the retail environment in much the same way that contactless tolls have reduced traffic congestion.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
