The implementation of multi-card, contactless PoS devices and terminals has been a subject long in discussion and the agreement represents a first, crucial step. Although individual card schemes are already offering this service, technology standards – or the lack of them – have proved a stumbling block.
The agreement gives the opportunity for payment devices and terminals to be created and used supporting both MasterCard and Visa transactions, conforming to one communications protocol and equivalent testing.
Meanwhile, American Express (Amex) has announced that its contactless payments service, Expresspay, has signed up RitzCamera and Sheetz, two US retailers. The Amex scheme works via radio frequency identification (RFID) technology embedded into cards and keyrings.
The increased efficiency of these systems allows consumers to pay for items simply by tapping or waving an enabled payments device over an enabled terminal regardless of the issuer. This can decrease security and payment problems at PoS because it removes the need for customers to pass a card or other device to a merchant, or for the merchant to operate a terminal with a PIN at PoS.
In the case of an agreed protocol, there will also be a benefit for vendors because it should streamline product development and testing, thereby increasing speed to market. Merchants can be confident that installed terminals will support multiple payment brands with no duplication of programming and testing of terminals needed.
The protocol is based on the MasterCard PayPass ISO/IEC 14443 Implementation Specification, which has been trialled and market-proven by Mastercard at businesses such as McDonald’s restaurants.
Gaylon Howe, executive vice-president, global product platforms at Visa, said: “This common protocol is just the first step towards the development of contactless payment systems.”
Further potential developments include using Nokia’s Near Field Communications in devices (see page 134).
Visa has also recently announced a rebranding to reflect its increased range of business activities, including debit and prepaid products, commercial payments solutions and processing and authentication services.
