Global payment business Barclaycard has today unveiled a new contactless payment method which will allow any customer to pay for goods at the point of sale simply by swiping their mobile phone.
The new PayTag sticker works just like a contactless credit card but at a third of the size of a traditional payment card and has been designed to fit onto the back of any mobile handset.
PayTag works in the same way as existing contactless payment methods, so by swiping their phone across a payment terminal at participating stores consumers will have the transaction value of goods being purchased automatically deducted from their account.
Meant as a bridging technology until the next generation of mobile – which will fully support mobile payments – become widely available, Barclaycard hopes that PayTag will get its customers familiar with paying via their phone.
A survey this month by research company YouGov found that 56 per cent people said that their mobile phone is the item which they are most lost without, and Barclaycard believes that many will welcome the opportunity of not having to carry a purse of wallet with them.
David Chan, CEO of Barclaycard Consumer Europe, said: “Today, we are offering the choice of mobile payments to millions of our customers at no additional cost to them.
“More than half of us say that the item we’re most lost without is our mobile phone, so we’re giving people the option of using them to make easy, convenient, everyday payments without the need to upgrade their current handset.”
Like regular contactless cards, PayTag can only be used for transactions up to £15 in value and all payment made by the system are protected against fraud or theft.
Barclaycard launched its Quick Tap Wallet system last week in association with Orange, which in time will allow customers of the mobile network to upload money from any UK bank onto their android phones for contactless payments.
By 2016 Barclaycard estimates that £3 billion worth of purchases will be made with mobile phones in the UK each year.
Chan added: “Barclaycard is developing a wide range of initiatives which will ultimately enable everyone to enjoy the benefits of mobile payments.
“Barclaycard PayTag is another milestone on our journey to make paying easier, and sits alongside other easy ways to pay with your mobile such as those we offer in partnership with Orange.”