Retail payment provider extends NFC network into convenience market

Retail payment provider extends NFC network into convenience market

PayPoint has become the first cash payments network to accept contactless credit and debit card payments at stores within its national network.

It said 1,000 PayPoint retailers nationwide already accepting credit and debit cards through the PayPoint/Lloyds TSB Cardnet service have been selected to receive a free new contactless PIN pad early in the New Year.

“Contactless is set to become the next big phenomenon to hit retail payments and those retailers who are early adopters will reap the rewards of the additional footfall and sales they attract,” said Ivan Donn, retail services director at PayPoint.

“There are already around 12 million contactless cards in circulation in the UK but the problem people have is where to use them. Once cardholders become aware that a retailer accepts contactless payments, they will keep coming back.”

Streamlined payment method gets boost

The new PIN pads have been distributed free of charge to the retailers, while weekly fees currently remain unchanged. Retailers have also been supplied with point-of-sale material, including mats and A5 window/door stickers to let customers know that contactless payments are accepted at that store.

The limit for contactless payments is £15 and transactions above these limits will require the customer PIN to be entered in the usual way. PayPoint added that retailers carry no financial risk and benefit from a transaction fee that is up to 4p lower than for debit cards, while consumers benefit from a faster transaction and the convenience of not having to enter their PIN or having to carry cash around.

“Many people carry very little cash on them and sales can be lost if customers are unable to pay using a credit or debit card,” added Donn. “But allowing customers to make low value payments by debit and credit card can be a disproportionate cost to retailers, so accepting contactless payments will help them reduce those costs.

“Research so far suggests that customers paying with a contactless card are more likely to make impulse purchases, which will drive incremental sales for the retailers.”

PayPoint has also said it is planning to roll out contactless payment facilities to new retailers to its network and then, in due course, to the nearly 6,000 retailers to which it provides a debit/credit facility.