Standard Bank will test MasterCard`s PayPass technology at its head office in Johannesburg.
According to Eddie Grobler, senior VP and GM for Africa of MasterCard International, the "contactless" cards will enable retailers to increase the speed of low value transactions, thereby reducing queues.
At a media briefing yesterday, Grobler said the contactless cards are simpler than cash.
"The card enables consumers to complete transactions with just a wave or tap of the card on a merchant terminal. It`s an ideal solution for low value environments like convenience stores, fast food drive-throughs and tollgates."
The increased transaction speed is due to the removal of personal identification numbers (PINs) and signatures for approval, said Standard Bank`s director of strategic initiatives and operations, Mike Olsen.
"Going forward we see benefits for merchants and customers alike, especially when considering the fast approaching 2010 World Cup. Here the contactless cards could play a significant role in queue management. For both sides the PayPass technology provides robust, secure and speedy alternatives to cash transactions," he said.
The removal of PIN and signature requirements means anyone stealing such a card would be able to perform fraudulent transactions without the fear of being caught by security measures. Nevertheless, Standard Bank is confident the transaction limit of R50 would not be profitable to fraudsters.
Standard Bank says it has put initiatives in place to prevent fraud and, as the issuer of the cards, it will carry full responsibility for any fraud that does occur.
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