November 29, 2014
In UK, for contactless payments, there had been a £20 cap on the value of transaction. A new service has emerged which would enable high value transactions beyond the capped amount. The service requires users to enter a PIN to confirm high value transactions. The new high value contactless service simply requires a software upgrade to merchant’s contactless POS terminals.
Payments, loyalty and insights specialist, The Logic Group, had recently announced that it is one of the first providers in the UK to gain accreditation from Visa to accept high value contactless payments via mobile devices. Officially available to Logic Group customers since 23rd May this year, the accreditation enables consumers to make high value contactless payments with Visa, paving the way for fast, secure and convenient mobile payments, such as the Apple Pay solution.
The new service is live in stores of a UK carrier which is a client of the Logic Group. Two other merchants are in process of rolling out the service next year. There are two different scenarios, in user experience perspective, as to how the new high value contactless payment service would work. One if the transaction value is above £20 and other if value is below £20. In UK, contactless payments have been adopted mediums like Transport for London so low value transactions are to be handled simultaneously.
The first scenario is that user goes to the terminal and presents the NFC phone. Upon NFC interaction, the phone recognizes if the amount is above £20 and if so, then immediately triggers a request for PIN. After entering the PIN on the phone’s UI, user will have to tap the phone again at the terminal. So these high value transactions would basically require a two-tap interaction. The other scenario where the user is, for example, in a queue, the PIN would have to be inputted in advance and the phone considers it a low value transaction.
According to The UK Cards Association, the number of contactless payments in the UK is growing; with monthly contactless card spend having topped £100m for the first time in April 2014 – an increase of 200 per cent from the same time last year. The research by the association also indicates that UK consumers, as a whole, make over 370 contactless payments every minute.