'Contactless' cards causing a stir
A step toward a cashless society continues, with a UK bank begining to intergrate contactless technology on UK credit and debit cards - but could it turn out to be a dangerous debt trap?
Soon many cards will offer contactless technology for purchases under £10, similar to using a transport ‘oyster’ card. Consumers will be able to hold up their card at participating retailers, enabling them to buy small purchases quickly.
While many are pleased with the new move, it has also brought up much debate that the new technology may make it harder for people to hold of to savings and easier for people to get into debt, as it may encourage frivolous spending habits and increase on credit card purchases. Whether this form of spending will see an increase of people getting into debt and seeking debt advice will only be known in due time.
Visa UK Managing Director Jose San Juan applauds the new technology: “I am pleased that the industry has united on standards for cards and terminals that will provide a highly convenient and quick way to pay for low value items.”
“By the autumn the first UK cardholders will be buying a coffee or a sandwich in a split second, and retailers will enjoy quicker transactions, the security of the payment guarantee and an end to the high costs associated with handling cash,” he said.
Finance News posted on 15/10/2007 11:24:59
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