The UK is to be used in a pilot project for a new type of credit card later this year, it has been announced.
Known as “contactless” cards in the industry, new technology allows for shoppers to register a transaction simply by waving the card over a scanner.
This means that the card remains in the possession of the cardholder at all times and will minimise risks of such crimes as cloning, UK payments association Apacs has claimed.
According to the body, the new technology “is as safe as chip and pin” and will be useful in speeding up transactions.
One of the credit card companies participating in the pilot scheme is Visa.
A spokesman for the card provider said that the benefits of the new cards include “quicker transactions, the security of the payment guarantee and – for retailers – an end to the high costs associated with handling cash.”
Meanwhile, Apacs has revealed that chip and pin has prompted a fall in credit card fraud in shops and retail outlets – but this has corresponded with a rise in online credit card fraud as criminals try to subvert security measures.
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