Cash : Relic or lifeline ?

 Cash : Relic or lifeline ?

 

After yesterday’s blackout across Spain and Portugal, it has really put a new perspective on our reliance on our cards and digital payment methods.

Whilst the pandemic encouraged us to move away from cash payments and  increase our spend on physical cards and digital payments, yesterday’s outage showed us that there is still a place for cash.

So, with that in mind, we e have some  practical tips to help prepare for digital payment outages to ensure you are  not caught off guard the next time systems go down:

🏦 1. Keep a Small Cash Reserve

• Enough to cover 2–3 days of essentials like food, transport, and minor emergencies
• Store some securely at home and keep a small amount in your wallet for day-to-day use

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🔋 2. Keep Devices Charged & Carry a Power Bank

• Keep your phone fully charged when possible and invest in a portable charger

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📱 3. Enable Offline Features on Your Payment Apps

• Some apps allow offline payment limits (like Apple Pay or Google Wallet), which can still process small transactions when you’re offline
• Check with your bank or wallet provider to see what’s available

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🧾 4. Make a physical note of key information

• Write down or print key account numbers and support phone lines (for your bank or credit card issuer)
• In a blackout or mobile outage, you may not be able to access contact info digitally

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⏳  5. Don’t Wait for a Crisis to Prepare

• The worst time to realise you need cash is after the ATMs go dark or merchants can’t process cards
• Treat it like insurance: you hope not to need it, but it’s crucial when you do

 

Contactless limit set to rise to £45

The contactless payment limit of £30 in the UK is to be raised in an effort to reduce the need for physical contact with Payment devices as well as to reduce the need for handling cash.

Banking Industry group UK Finance said that from April 1st, the new £45 limit would be applied at many stores though it would take longer to roll out across the retail network as a whole.

The decision to raise the limit was taken following consultation between the retail sector and the finance and payments industry and follows similar increases in several other European countries over the past week.

In the past few days, governments and the payments industry in Greece, Ireland, Malta, Poland and Turkey have worked together to raise the contactless payments limit

The changes were already under consideration by the industry, but the process has been expedited as part of the industry’s response to the Covid-19 outbreak to support consumers who choose to pay using contactless at this time.

From 1 April 2020, consumers will begin to see an increasing number of retailers accepting contactless card payments up to the new £45 limit. Given the pace at which this change is being rolled out, the new limits will take some time to be introduced across all retailers, including some of those facing additional pressure due to the Covid-19 outbreak.

For consumers spending more than £45 there are many ways to choose to pay, for example through Chip & PIN, cash and alternatives such as mobile payments which do not have an upper limit when authenticated through biometric technologies.

Stephen Jones, CEO of UK Finance, said:

“The payments industry has been working closely with retailers to be able to increase the contactless payment limit to help customers with their shopping at this critical time for the country.

“This will give more people the choice to opt for the speed and convenience of purchasing goods using their contactless card, helping to cut queues at the checkout.

“The industry continues to work closely with the government and regulators to support customers impacted by Covid-19 and ensure that they can pay in a way that suits them.”

Latest figures from UK Finance reveal that £80.5 million was spent on contactless payments in 2019, up 16% on the previous year. We will undoubtedly see a bigger uplift in figures for the coming year.

For the latest payment and fintech jobs, go to www.cardandpaymentjobs.com

Contactless Cards and Payments Conference - June 20th and 21st - London

Following on from the success of the 2011 conference, Contactless Cards & Payments is returning to London for it’s 10th annual conference on 20th & 21st June 2012.

A new report by Forrester suggested Britain will be a cashless society by 2016.

Contactless Cards and Payments 2012 covers a variety of technologies, from NFC to mobile payments and banking. This conference is an update on the newest technologies to be developed, case studies of successful schemes and a look at the risks involved from a fraud perspective. With developing technologies comes new regulation, and this event will also look at the regulatory bodies and how they are approaching the potential risks and prevention strategies they intend to apply.

With the conference taking place a month before the London 2012 Olympics – this is a good opportunity to gain an insight into the role contactless cards play in major events. As the leading banks have a big role in contactless, the question most people are asking is what role the big technology leaders such as Apple and Google will play in securing their position in this rapidly growing market.
Although a tremendous amount has been achieved in contactless cards, the question still remains as to why there is a slow response and attitude from consumers towards this ever evolving concept.

SMi's two day conference has been carefully designed to bring you 18 successful case studies and interactive panel discussions, this is the only event that will give you answers and experiences you need to gain a better insight into the contactless cards market.

Key topics to be discussed:

NFC: recent developments in mobile payments

E-wallets: are we ready for a cashless society?

The European market: hear from leaders in the Turkish and Spanish markets

Retail: hear from leading retailers including stadiums and vending machines

Apple and Google: what will they do?

Keynote speakers include: 

Juan MorlaCards Director
La Caixa Bank (Spain)

Burak IlgiciogluCards & Payments Systems Analysis ManagerYapi Kredi Bank (Turkey)

Craig RamsayGlobal Innovation
Barclaycard

Carl Scheible Managing DirectorPayPal

Kevin LomaxHead, Collections Cash Management
Standard Bank

Victor DostovPresident
Russian Electronic Money Association

Mehmet SezginCEO Payment Systems Garanti Bank

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The expert speaker line-up also includes

Burak Ilgicioglu, Cards & Payments Systems Analysis Manager, Yapi Kredi BankCraig Ramsay, Global Innovations, Barclaycard
Sergio Cozzolino, Strategic Development Director, Telecom Italia Mobile
Matthew Hudson, Head of Business Development, Transport for London
Carl-Olav Scheible, Managing Director, PayPal
Kevin Lomax, Head, Collections Cash Management, Standard Bank
Victor Dostov, President, Russian Electronic Money Association
Mehmet Sezgin, CEO, Payment Systems, Garanti Bank
Juan Morla, Cards Director, La Caixa (Spain)
Karen Walsh, Business Development Director, Everything Everywhere
Gerhard Romen, Director Financial Services, Nokia
Claire Maslen, Senior Manager, Market Development, 02
Robert Courtneidge, Global Head of Card & Payments, Salans Solicitors
Dave Birch, Director, Consult Hyperion
Saadi Hussain, Head of Commercial Management, BT
Chris Crooks, Managing Partner, Optimum Associates
Francesco Burelli, Partner, Value Partners

Go to http://www.smi-online.co.uk/events/overview.asp?is=8&ref=3720 and book your ticket now

NFC – Not Fully Committed ?

75% of contactless card owners have not used them

Figures published by Mintel show that in the UK, only a quarter of people issued with contactless cards have ever used them to make a payment.

Paradoxically, a healthy 62 per cent agree that it is a more convenient payment method whilst 29 per cent are neutral on the issue and nine per cent disagree.

Furthermore, 72 per cent of consumers think that banks should only issue contactless cards on request showing a good degree of apathy towards the technology.

Toby Clark, head of UK financial services at Mintel, said the limited acceptance of contactless cards and a lack of "a compelling reason" to switch from chip and PIN are putting off consumers.

He added that security was also an area of concern.

"People are worried about the security implications of contactless cards - in particular, how easy it would be for thieves to use stolen or lost cards," he said.

Personally, I believe there are many factors at stake, firstly, not enough merchants are accepting contactless transactions, and secondly, they are not doing enough to promote the fact that they do (possibly for our friends at the acquirer end to address??).

There is also the angle of cardholder education. Are Issuers doing enough to communicate the contactless ability on cards? In a market where consumers are perfectly happy to ‘tap and go’ on a closed system such as Oyster, why wouldn’t they automatically extend this to their daily morning cappuccino and newspaper?

Barclaycard PayTag targets contactless payments market

Barclaycard has launched a stick-on credit card which will allow its 12 million customers the chance to make wave-and-pay purchases from their mobile phone or other item of their choice.

The PayTag is a quarter of the size of a traditional credit card and will sit unobtrusively on any mobile handset or other item, and is linked to a customer's traditional credit card account. It will let them make purchases in any "contactless" store, restaurant, and even on public transport.

Barclaycard hopes the move will trigger the mass take-up of contactless payments that has so far proved elusive.

In May, a select group of its credit card customers will be the first to receive the cards, with every cardholder eventually offered the free upgrade.

David Chan, CEO of Barclaycard Consumer Europe, said: "More than half of us say that the item we're most lost without is our mobile phone, so we're giving people the option of using them to make easy, convenient, everyday payments without the need to upgrade their current handset."

Currently, a number of banks allow customers to make contactless purchases with credit and debit cards. The payments do not require a pin number on purchases up to a maximum set by the bank. This is currently £15, but is set to rise to £20 in June.

Retailers accepting contactless payments have also been largely limited to coffee shops and a few larger stores such as Boots. However, the scheme received a major boost in January when McDonalds announced it was using the new technology in all its 1,200 outlets in a bid to cut queue times.

Visa predicts the number of contactless point-of-sale terminals in the UK will rise by 50% to 150,000 in 2012. The London Olympics is set to be the first contactless games, and major retailers that offer contactless payments will soon include Waitrose, 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 capital's transport network in 2013.

Trials of contactless payments around the world have seen users buy items in shops with "near field communication" technology embedded in their mobile handset. However, until now a lack of such handsets among consumers has held up the revolution.

PayTag, however, allows the card holder to turn any item into a mobile wallet.

Unlike existing credit and debit cards that can be used contactlessly, PayTag doesn't require a pin to be inputted every few transactions. Barclaycard has said it comes with the same 100% fraud protection as its other cards, and has promised to refund anyone who loses their card which is then used fraudulently.

This promise could be severely tested in months to come when users start leaving phones on buses late at night, and thieves realise they can make as many payments as they can before the card is reported missing and cancelled.

In March, Barclaycard parent company Barclays launched Pingit, a way to send money between bank accounts using a mobile app. It is predicted that £3bn of purchases will be made with mobile phones in the UK in 2016.

To view the latest exciting jobs in the card and payment industry, go to http://www.cardandpaymentjobs.com

WHSmith goes contactless with Streamline & Visa Europe

Leading retailer implements contactless payment technology

 WHSmith, one of the UK’s largest retailers of stationery, books, newspapers, magazines and impulse products, has become the latest business in the UK to go contactless in partnership with Streamline & Visa Europe. The new contactless payment option will initially be available in 46 major travel locations, such as London Heathrow, Gatwick, Stansted and Mainline Railway Stations across the UK. These stores are expected to go live throughout Spring 2012.

The Visa payWave contactless technology provided by Streamline enables consumers to simply touch the reader with their cards for everyday items under £15 (rising to £20 from 1 June). Transactions take place in less than a second, giving both retailers and consumers speed and convenience without the need to handle cash. For retailers, contactless payments help to reduce the costs associated with cash handling, and the related security costs of having cash on site.
Matt Rowsell, Chief Commercial Officer for Streamline, said: "Contactless payments are ideally suited to time-poor shoppers, such as those travelling through busy rail and airport locations. We’re confident that contactless will enhance the customer experience and reduce transaction times in these very busy stores."
"The introduction of contactless at these key travel sites is ideal for consumers who often need to complete a purchase quickly prior to catching a train or plane. We are delighted that WHSmith has decided to adopt contactless technology and believe the introduction of this service will be of great value to their customers," said Mark Austin, Head of Contactless at Visa Europe.
With over 1,000 stores across the UK, WHSmith is the first large bookseller, stationer and newsagent to adopt contactless technology in the UK.

To view exciting card and payment jobs, go to http://www.cardandpaymentjobs.com