Tap-and-go payment cards gaining popularity in Australia
The number of people using the new tap-and-go payment cards in Australia is projected to double every year. MasterCard Australia country manager Andrew Cartwright says it’s the rapid uptake by consumers that is making the headlines.
Tap-and-go payment cards have become more popular as the number of retail outlets accepting these cards also increase. Presently, about 35,000 outlets accept tap-and-go cards; about 20,000 through Visa and about 15,000 via MasterCard. Customers of financial institutions offering tap-and-go cards are estimated at 4.5 million. This as companies have even incorporated tap-and-go cards with identity cards for use in company cafeterias, vending machines and parking buildings.
A similar trend is happening in Britain where the use of tap-and-go cards overtook the use of cash last month. Kelly Bayer Rosmarin, a spokesperson for Commonwealth Bank, says the bank processed more than 150,000 tap-and-go transactions in November, up from 90,000 the previous month.
Mr. Cartwright says the average customer transaction is about $25 since the cards are limited to transaction amounting to less than $100. “However, some merchants have average values as low as $15, reflecting the benefit of the product in terms of speed and convenience for low-ticket value transactions,” adds Mr Cartwright. The two major issuers of tap-and-go cards are MasterCard and Visa. So far, MasterCard is enjoying a bigger share of cards on issue in Australia and globally with more than 83 million tap-and-go-style cards.
According to a study, most cardholders who use tap-and-go cards three times become more frequent users. Customers also show loyalty to stores that have tap-and-go terminals installed. This goes to show that contact-less payment is indeed widely accepted.
Retailers like supermarkets, drug stores, fast-foods, hardware stores, news agents taxis and vending machines are just a few of those accepting tap-and-go transactions. More retailers are having their terminals installed day by day.
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Source : http://www.news.com.au/money/banking/tap-and-go-cards-could-overtake-cash-in-australia/story-e6frfmcr-1225969961315
