Barclaycard: Plastic RIP?

Monday, 08 September 2008 12:00

The end of paying on plastic could be nigh, Barclaycard warned today.

The credit card provider is predicting a move away from plastic payment cards to contactless payment - as shoppers swipe or wave chips in order to make payments.

Several providers already offer cards for small payments - with Barclaycard in London offering one such product in tandem with the Transport for London Oyster Card - but the technology is now expected to leave cards behind.

Barclaycard predicts the use of RFID chips in mobile phones or key fobs to allow payment.

"In time you won't have to carry a plastic credit card around with you if you don't want to, although some people will chose to for nostalgic reasons," said Antony Jenkins, Barclaycard chief executive.

"If I had said to you ten years ago that you couldn't pay with a cheque at the supermarket, you wouldn't have believed me. That is now the reality, and we see plastic cards going the same way eventually."

Last year Barclaycard launched its OnePulse card using the Visa Wave Pay system and the firm now hopes to have one million cards in circulation by the end of the year.

The contactless system is initially forwarded as a way of paying for low value items such as coffee and newspapers - with high value goods still demanding a PIN to be tapped in. Roll-out commenced from London.

Maestro and MasterCard meanwhile have the PayPass system in place.

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