CASHLESSNESS

Consumers warned over tap-and-pay technology

 

Banks, financial institutions and now internet service providers are tapping into the market for contact-free payment systems. It is a time-saving temptation for busy people, but tech experts say consumers must be aware of the risks when opting for the technology.

Contactless credit cards and mobile phone chips connect to payment terminals via a short range radio frequency identification (RFID). Unlike traditional payment methods, they do not require a signature or PIN to verify the card holder's identity.

Rob Livingstone from the University of Technology says it is a win-win for banks and retailers because cash is expensive. "There's a number of benefits, some of which relate to increased customer service, a lower per-transaction cost and more importantly the potential elimination of cash," he said.