News

Issuers must tap potential in contactless payments

April 5, 2006

ePaynews: Contactless card payments offer United States-based merchants and card issuers specific benefits, but the technology must be understood to maximize its potential, a new Javelin Strategy report notes. For merchants seeking to migrate cash transactions to a cheaper option, the value of contactless payments must transcend transaction speed, as merchants lack incentives to convert cash payments to more expensive card options. Since merchants' contactless payment acceptance is hindered by the perceived cost of cards, issuers and networks need to offer attractive rates.

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