Radio Frequency Identification Technology for Logistics, Tagging and EPC

FTC plans discussion on contactless payments

Tuesday, May 13, 2008

The Federal Trade Commission will hold a Town Hall meeting this summer to examine consumer protection issues related to the growing use of contactless payment devices based on RFID technology. The Town Hall, which will be free and open to the public, is scheduled for July 24, at the University of Washington in Seattle.

The FTC recognizes many benefits provided by these RFID applications, but is concerned with potential costs to consumers’ individual privacy rights associated with the technology’s growth. The public meeting will provide a chance to begin studying the new technology as it matures, convene interested parties and weigh the costs and benefits to consumers of its use.


Among the topics planned for discussion are: the extent to which contactless devices and readers are being deployed domestically and around the world; consumers’ understanding of contactless payment capabilities and potential risks, and the need for further consumer education; security and privacy threats and proposed solutions; and emerging developments that may shape the contactless payment marketplace in the future.

The FTC invites anyone with an interest in the topic to submit a request to be a panelist and to recommend other related topics for discussion. The requests should be submitted electronically to payonthego@ftc.gov by June 6, 2008. [end] 

Superdrug, one of Britain’s largest beauty and health retailers, has introduced contactless payment for its in-store customers, according to Retail Gazette.

Created by Streamline and Visa Europe, the contactless system will enable customers to make payments of up to £15 (approx. USD $23) by simply waving their contactless bank card at the more than 50 participating Superdrug stores in London and Liverpool.

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Proxama has announced a partnership with semiconductor supplier ARM Holdings to create secure payment mechanisms for mobile handsets.

The UK-based partners say they will combine ARM’s TrustZone technology with Proxama’s Mobile Wallet to develop a “highly secure” environment for NFC-enabled mobile contactless payments and mobile internet payments.

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la Caixa and Visa Europe have begun rolling out their contactless payment system in Barcelona. The bank is set to make all cards and point-of-sale across Barcelona contactless, requiring the distribution of 1 million cards and more than 15,000 new POS terminals.

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The European Payments Council (EPC) has published the second edition of its “White Paper on Mobile Payments.”

According to EPC, the white paper focuses on the usage of the mobile payments in the Single Euro Payments Area (SEPA) and explores how m-payment services can be delivered through cooperation between service providers in the payment industry and players within the mobile ecosystem.

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A new survey from Euro Kartensysteme shows that Germans are starting to embrace the idea of contactless and NFC payments.

Out of 1,040 Germans aged 18-59, 43% responded that they would like to make contactless payments if given the opportunity, of which 58% percent would make their payments with a debit card card, 41% with a credit card and 50% with an NFC phone.

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As some may recall back in June 2010, the Metropolitan Transportation Authority (MTA) of New York launched tap-and-go contactless payments for commuters to enter select subway stations and participating bus lines using MasterCard PayPass-enabled terminals. Well, the results are in.

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