Javelin Report: Retailers Have No Reason To Support Contactless Payment
Written by Evan SchumanApril 24th, 2008
Although contactless payment has tremendous potential to advance payments and set the stage for mobile commerce, it's suffering from benign neglect from both retailers and the card brands—and banks, too. That according to a new contactless payment report from analyst firm Javelin Strategy & Research.
The key argument of the report is that none of the three groups of companies involved—the card brands, the issuing banks and key retailers—is spending the dollars to create true incentives to make contactless payment work, said lead report author Bruce Cundiff, who is Javelin's director of payments research. "There is no effective value proposition for merchants and for wireless carriers," Cundiff said.
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One Comment | Read Javelin Report: Retailers Have No Reason To Support Contactless Payment
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-Christine
April 2nd, 2009 at 4:00 am
The Finnish university student body card has a contactless prepaid payment system attached to it. There is a small discount for services, the cards needed to be issed anyway and since the issuer is not the usual credit card company, they benefit as well. For the student diners or fast food outlets the benefit may be the decreased cost of handling cash and the automatic student deduction mechanism.
Maybe contactless will happen first at the fringes and not at WalMart?
Petri