Barclaycard PayTag looks to boost mobile payments
19th Apr 2012 | 09:38
Bank re-invents the credit card to fill the NFC void
Barclaycard has announced its new PayTag system, which it hopes will encourage more people to use their mobile phones to pay for small purchases.
Barclaycard Visa credit card customers will get a free sticker, one third of the size of a standard bank card, with a Near Field Communication (NFC) chip in it, which they can stick to the back of their handset.
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Although Barclaycard is pushing PayTag as a new way to deliver mobile payments, the system doesn't require a mobile phone to work, as the sticker uses the same technology found in Barclay's contactless credit cards.
David Chan, CEO of Barclaycard Consumer Europe said: "We're giving people the option of using them to make easy, convenient, everyday payments without the need to upgrade their current handset."
Chan revealed that more companies were coming on board with contactless payments, including the likes of Asda and Tesco, as well as Transport for London where NFC payments are currently available in some London taxis and will be rolled out to buses later this year and the tube network in 2013.
Tom Gregory, Head of Digital Payments at Barclaycard, spoke to TechRadar and confirmed that the PayTag system has a limited shelf life, with the end goal being the technology fully integrated into all mobile phones.
"The end vision is to have every thing integrated into the mobile handset, and the PayTag will be an accelerator for this technology as well as bringing contactless payments to customers today."
Barclaycard Visa credit card customers are entitled to one free PayTag each, which currently only comes in black, but there is the possibility that more colours and debit card support could arrive in the future.
Currently the limit for contactless transactions is £15, but this will be raised to £20 in June and the PayTag system is covered by the same fraud protection as any other Barclaycard.