Credit unions have had a lot on their technology plates of late, between rolling out EMV cards and keeping pace with the ever-changing mobile and digital needs of their members. The last thing they want to hear is there is another technology challenge they need to tackle. But it’s here. It’s called contactless payments. And don’t worry—it’s not as scary or complicated as it may sound.
Contactless cards, also known as “tap-to-pay” cards, have been common fare outside the U.S. for a long time. It’s no longer a question of whether these cards will take hold here. The question now is how soon until they are the preferred form of payment?
The Technology Is in Place
According to information from Visa, 95 percent of new POS terminals shipping today are contactless capable with either near-field communication or magnetic secure transmission technology. Thanks to advancements in new technologies and manufacturing processes, the cost of contactless dual interface cards (cards that are enabled to be dipped using the card’s chip or tapped using the card’s embedded RF antenna) is greatly reduced.
continue reading »