BoA and Virgin committed to contactless roll-out
(1 November 2010 – UK) Bank of America’s card unit, MBNA, and Virgin Money have both announced they will be rolling out contactless credit cards to millions of UK customers over the next two years.
Bank of America says that by the end of 2011 more than five million MBNA-issued credit cards - both Visa and MasterCard compatible - will have contactless technology.
For security purposes, the cards cannot be used until a PIN is entered on first use and customers will occasionally be asked to enter their PIN to ensure the transactions are valid.
Virgin Money will start replacing two million credit and debit cards this month and expects one in five will be enabled for 'tap and go' payments of up to £15 (A$24) at equipped terminals by the end of the year.
The move comes as a survey from MBNA reveals strong public backing for the technology. Of over 1000 respondents, 80 percent agree it would help save time in queues when paying for items, and 69 percent believe the emerging technology will make their lives easier and benefit consumers.
Ian O'Doherty, Europe card executive, Bank of America, said that the bank is committed to offering simplicity, added value and choice in all of our products and services - enabling our customers to use contactless payments is a fantastic example of making that commitment a reality.
The pair are following Barclays and Barclaycard into the market, which claims to have issued eight million of the 10 million contactless cards in circulation. It says that between January and August this year, it recorded a 188 percent increase in monthly contactless transactions.
For security purposes, the cards cannot be used until a PIN is entered on first use and customers will occasionally be asked to enter their PIN to ensure the transactions are valid.
Virgin Money will start replacing two million credit and debit cards this month and expects one in five will be enabled for 'tap and go' payments of up to £15 (A$24) at equipped terminals by the end of the year.
The move comes as a survey from MBNA reveals strong public backing for the technology. Of over 1000 respondents, 80 percent agree it would help save time in queues when paying for items, and 69 percent believe the emerging technology will make their lives easier and benefit consumers.
Ian O'Doherty, Europe card executive, Bank of America, said that the bank is committed to offering simplicity, added value and choice in all of our products and services - enabling our customers to use contactless payments is a fantastic example of making that commitment a reality.
The pair are following Barclays and Barclaycard into the market, which claims to have issued eight million of the 10 million contactless cards in circulation. It says that between January and August this year, it recorded a 188 percent increase in monthly contactless transactions.
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