For Contactless Payments, Consistency is Key

ABI: 2005 was notable in the United States for its demonstration - in the rollout of contactless payment capabilities to millions of people - of just how fast a major technology can be deployed. Issuers such as Chase Bank, HSBC, American Express and others have distributed contactless cards and key fobs to millions of their customers. Many constituents are involved: merchants, consumers, card-issuers, associations, and all the members of the contactless payments ecosystem - chip manufacturers, antenna designers, operating system developers, inlay makers, and card plastics packagers. Dozens of companies have swiftly changed gears to take advantage of this emerging opportunity. Many companies are trying to provide piecemeal solutions. There are many brands and co-brands, many form-factors. But one theme that has emerged time and time again from our research is the need for consistency. As this technology is being rolled out, it's incredibly important to develop a consistent industry-wide message that speaks to merchants, consumers and even component manufacturers. Some common technology standards have been put in place, but that consistency must extend all the way to the consumer who will understand that despite different form factors, modes of use and retailer adoption rates, contactless payment is one option, not two dozen. Similarly, it's beneficial if merchants, and all the players in the design and manufacturing chains that underpin the retail effort, fully understand the issuers' needs. Market-wide coordination will ensure the best outcomes for all concerned. Contactless Commerce Research Service Publ 20060215