Contactless Payments

eBook reviewing contactless payments, from the market and demand, to the details and practicalities on how the technology works.

Product detail
Product type: Books
Date of publication: 19 Oct 2011
Product format: Online

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Contactless technology is being successfully used in a variety of applications and attention has now turned to applying it to payments. Contactless payments are designed to replace cash in society for low-value, high-volume transactions in a number of different types of outlets from convenience stores and coffee houses to transport networks. Trials have been conducted around the world and have sparked much media interest in this field which can utilise cards, fobs or now even mobile phones. However current usage remains disparate and consumers still have some concerns about the security of these cards. Until the use of contactless cards becomes more widespread and consumers begin to understand their operation, these concerns are likely to remain. This eBook looks at the market and demand for contactless payment and reviews the detail and practicalities on how this technology works. It goes on to highlight some of the areas where this technology has been successfully implemented, key potential areas for growth and the outlook for contactless payments in the future.

Contents

Executive Summary

  • Introduction and Methodology
  • Introduction
    • Definition of Contactless Payments
  • Objective
  • Scope
  • Methodology
  • Definitions and Acronyms

The Contactless Payments Market

  • Introduction
  • The Move Toward Cashless
  • Electronic Payments vs. Cash
  • Chip and PIN vs. the Magnetic Stripe
  • Consumer Demand or Provider Push?
  • Challenges to be Addressed
    • Increase Consumer Education
    • Upgrade POS Equipment
    • Get Major Retailers Onboard
    • Migrate to EMV
    • The Global Financial Crisis
    • Commercial Model Unclear
    • Low-key Trials
  • Mobile Payment Growth in Developing Regions
  • Summary

Contactless Technology

  • Introduction
  • Plastic Payment Cards
    • ISO 7816
    • ISO/IEC 14443
    • EMV standard
  • Contactless Payments
  • Security of Contactless Payments
  • Communication Standards
  • Contactless Readers
  • Transaction Values
  • Processing Contactless Transactions
    • Recognition of Contactless Cards
    • Receipts
    • Gratuities
  • RFID and Contactless Payments
    • How RFID Works
    • Problems Associated with RFID
    • RFID Standards
    • System Disruption
    • Reader Collision
    • Tag Collision
  • Set-up and Transaction Costs
  • NFC and Mobile Payment Technology
  • Summary

End-use Applications

  • Introduction
  • Contactless Plastic Cards
    • Closed-loop Contactless Cards
    • Open-loop Contactless Cards
  • Government Applications
  • Fuel Retailing
  • Car Parks
  • Payment Stickers
  • Contactless Mobile Phone Payments
    • Retailers Considering NFC
    • NFC: Benefit to the Retailer?
    • Mobile Commerce Strategy
    • Mobile Commerce and Shopping Behaviour
    • Consumer Concerns
    • Japanese Users
    • NFC-enabled Handsets
    • Visa and ANZ Trials
  • Incentives to Increase Demand
  • RFID and NFC in Health Care
    • Barriers to Adopting RFID in Health Care
    • NFC in Health Care
  • Summary

Outlook for Contactless Technology

  • Awareness and Acceptance of Contactless Cards
  • Transit Systems
  • Mobile Payment Outlook
  • Partnerships
  • NFC: Beyond Payments
  • New NFC Form Factors
  • Biometric Payment Trials
    • Existing Applications of Biometric Systems
    • Potential Applications of Biometrics
  • Summary

Tables and Figures

Tables

  • 1.1 Technical definitions and acronyms
  • 2.1 EMV adoption rates by region, 2010
  • 2.2 Examples of contactless mobile trials in Europe
  • 2.3 Mobile phone vs. bank account ownership in the developing world, 2011 (%)
  • 3.1 RFID Frequencies
  • 3.2 Smart Card Alliance model for calculating contactless ROI
  • 3.3 Comparison between NFC and RFID
  • 3.4 NFC capabilities
  • 4.1 Examples of contactless card transport schemes
  • 4.2 Types and costs (HK$) of Octopus cards available
  • 4.3 Applications of RFID in healthcare

Figures

  • 0.1 Transaction times of different payment methods (seconds)
  • 0.2 Use of contactless mobile payments by country, 2011 (%)
  • 0.3 Main reasons that consumers would not use their mobile phones to pay for items (%)
  • 2.1 Total reported losses from ATM -related fraud attacks in Europe, 2007-2010 (€m)
  • 2.2 Use of contactless mobile payments by country, 2011 (%)
  • 2.3 Awareness of contactless mobile payments in the UK, 2011 (%)
  • 2.4 Interest in the different uses of contactless mobile payments in the UK, 2011
  • 2.5 Proportion of mobile consumers using mobile banking, couponing and commerce in the US, 2009-2010 (%)
  • 2.6 Projected growth of mobile subscriptions in China and India, 2009-2014 (millions of subscribers)
  • 3.1 Transaction times of different payment methods (seconds)
  • 3.2 Multi-functional card readers
  • 3.3 The contactless payments symbol
  • 3.4 Step one of the contactless payments process
  • 3.5 Proximity with which contactless cards need to be held to card readers
  • 3.6 Confirmation of a successful contactless transaction
  • 4.1 Fuel smart tag
  • 4.2 Fuel smart tag in key fob form
  • 4.3 Contactless parking payment device
  • 4.4 Citi's contactless mobile phone sticker
  • 4.5 UniCredit's contactless payment sticker
  • 4.6 Reasons for retailer consideration of NFC, 2011 (%)
  • 4.7 Reasons that UK retailers are not considering NFC, 2011 (%)
  • 4.8 Proportion of UK retailers with a mobile commerce strategy in place, 2011 (%)
  • 4.9 Importance of mobile commerce channels to UK retail businesses, 2011 (%)
  • 4.10 Impact of mobile commerce on in-store consumer shopping behaviour, 2011 (%)
  • 4.11 Timeframe for consumer adoption of mobile commerce, 2011 (%)
  • 4.12 Main reasons that consumers would not use their mobile phones to pay for items, 2011 (%)
  • 4.13 Mobile payments billing preferences, 2011 (%)
  • 4.14 Volume of mobile wallet purchases in Japan by merchant type, December 2010 (million)
  • 4.15 Merchant locations in which e-money cards are used in Japan, 2010 (%)
  • 4.16 Monthly spending on e-money cards in Japan, 2010 (yen and %)
  • 4.17 Google's Nexus S NFC-enabled mobile handset
  • 4.18 NFC-enabled diabetes monitor