Contactless Payments at the POS: A Tsunami on the Horizon

Table of Contents

• Introduction 4

1. Why Contactless Devices? 5

• 1.1. Consumer Benefits 5
• 1.2. Retailer/Merchant Benefits 6
• 1.3. Issuer/Acquirer Benefits 8
• 1.4. Generic Process for Contactless POS Transaction: 9

2. Contactless Payment Technology Options 10

• 2.1. ISO Contactless Smart Cards 10
  • 2.1.1. ISO / IEC 14443 10
  • 2.1.2. ISO / IEC 15693 11
• 2.2. Non Standard Contactless Smart Cards 11
• 2.3. Non-Card Radio Frequency Devices 12
  • 2.3.1. Low Frequency (<300 MHz) RF Technology (RFID) 12
  • 2.3.2. Ultra-High-Frequency RF Technology (RFID) 12
• 2.4. Optical, Microwave and Cellphone 13
  • 2.4.1. Infrared 13
  • 2.4.2. Carrier-Based Mobile 13
  • 2.4.3. Bluetooth 14
• 2.5. Winners and Losers 15
• 2.6. Comparative Table of Contactless Technologies 15

3. Major Leading Transit Program Descriptions & Update 16

• 3.1. Octopus 16
• 3.2. London Oyster Card 17
• 3.3. US Contactless Transit Initiatives - Timeline 18
• 3.4. Contactless in the US 18
• 3.4.1. SmarTrip 18
• 3.4.2. San Francisco Bay Area TransLink 19
• 3.4.3. ORANGES (Orlando Regional Alliance for Next Generation Electronic Payment Systems) 19
• 3.5. Summary of Contactless Payment Systems in Transit Applications 20

4. US Card Industry Program Descriptions & Pilots Update 21

• 4.1. PayPass 21
  • 4.1.1. PayPass Technology Trial - NY 22
  • 4.1.2. PayPass Orlando Trial (Market Trial) 22
  • 4.1.3. PayPass Dallas Pilot (non-card form factor) 23
  • 4.1.4. PayPass developments 23
• 4.2. Visa 24
  • 4.2.1. Smart Visa 24
  • 4.2.2. Visa Seoul South Korea Transit Pilot 24
  • 4.2.3. South Korea Telecom / Moneta Shot 'n' Pay 25
  • 4.2.4. Visa/Philips Alliance 25
• 4.3. American Express 'ExpressPay' 25
  • 4.3.1. ExpressPay Phoenix Pilot 25
  • 4.3.2. Other ExpressPay Trials 26

5. Conclusion 27