Contactless payment
The embedded integrated circuit chip and antenna enable consumers to wave their card, fob, or handheld device over a reader at the point-of-sale terminal.
EMV (abbreviation for Europay, Mastercard, and Visa) is a common standard used by major credit card and smartphone companies for use in general commerce.
Tokenisation is a newer concept of encapsulating a card issuer's details within a hardware device application such as via Apple Pay app on iPhones.
Major financial institutions and multinational corporations now offer contactless payment systems to customers as contactless credit cards have become widespread in the U.S., UK, Japan, Germany, Canada, Australia, France, the Netherlands, etc., as consumers are likely to spend more money using their cards due to the ease of small transactions.
[citation needed] Contactless payments specifically have become increasingly popular, accounting for 4 out of 5 point-of-sale credit card purchases in Australia as of 2019.
[5][6] Then Philips Semiconductors applied for the six fundamental patents of NFC, invented by the Austrian and French engineers Franz Amtmann and Philippe Maugars who received the European Inventor Award in 2015.
[7] In July 2004, Sony, who had implemented the contactless RFID smart card FeliCa in Japan, introduced the Osaifu-Keitai (おサイフケータイ) system (literal translation: "wallet-phone") developed with the mobile phone operator NTT DoCoMo on multiple FeliCa systems such as Edy and, on 28 January 2006, on Mobile Suica used primarily on the railway networks owned by JR East.
[9] In October 2005, the immediate contactless payment was first experimented in France in Caen during 6 months with a Samsung NFC smartphone by Orange in collaboration with Philips Semiconductors in the Cofinoga shops (Galeries Lafayette, Monoprix) and Vinci parkings.
For the first time, thanks to "Fly Tag", the system allowed to receive as well audiovisual informations, like bus timetables or cinema trailers from the concerned services.
[8][6] In June 2007, the payment with a contactless bank card was tested at the FNAC of La Défense in Paris and from 19 November 2007 to 2009 in some shops of Caen and Strasbourg, this time with smartphones NFC, provided by four operators (Orange, Bouygues Telecom, SFR and NRJ Mobile).
[6] On 5 November 2007, Orange and the transport societies SNCF and Keolis associated themselves for a 2 months experimentation with smartphones in Rennes in the metro, bus and TER trains.
[14] In January 2010, Barclaycard partnered with mobile phone firm Orange, to launch a contactless credit card in the UK.
[16] After a test conducted from October 2005 to November 2006 with 27 users,[17] on 21 May 2010, the transport authority of Nice Régie Lignes d'Azur was the first public transport provider in Europe to add definitely to its own offer a contactless payment on its tramways and bus network either with a NFC bank card or smartphone application notably on Samsung Player One (with the same mobile phone operators than in Caen and Strasbourg in 2007), as well as the validation aboard with them of the transport titles and the loading of these titles onto the smartphone, in addition to the season tickets contactless card.
In the Paris transport network, after a 4 months testing from November 2006 with Bouygues Telecom and 43 persons[17] and finally with 8,000 users from July 2018, the contactless mobile payment and direct validation on the turnstile readers with a smartphone was adopted on 25 September 2019[23][24][25] in collaboration with the societies Orange, Samsung, Wizway Solutions, Worldline and Conduent.
NFC is used in Seoul[26] after its introduction in South Korea by the discount retailer Homeplus in March 2010[27] and in Tokyo it is tested then adopted or added to the existing systems, like the mobile wallet Osaifu-Keitai, from May 2010 to end of 2012.
[31] In February 2014, Mastercard announced that it would partner with Weve, which is a joint venture between EE, O2, and Vodafone UK, to focus on mobile payments.
[41] In 2022, Apple Inc. announced Tap to Pay, a feature which allows merchants to use iPhone devices as payment terminals for contactless cards.
Belgacom's Pingping, for example, has a stored value account and via a partnership with Alcatel-Lucent's Touchatag provides contactless payment functionalities.
Major financial entities now offering contactless payment systems include Mastercard, China UnionPay, Citibank, JPMorgan Chase, American Express, KeyBank, Barclays, Barclaycard, HSBC, Lloyds Banking Group, FreedomPay, RuPay, The Co-operative Bank, Nationwide Building Society and NatWest Group.
[55] Contactless debit and credit transactions use the same chip and PIN network as older cards and are protected by the same fraud guarantees.
