Visa International has developed a new global payment specification that removes the need to physically insert a smart card into a reader.
The new specification, designed to work side-by-side with conventional chip and magnetic stripe technologies, will support a faster and more convenient way to pay and be paid, particularly in environments where access to traditional, card-based payment methods has been limited.
Based on the international standard ISO 14443, the new specification uses a chip embedded in a plastic card or an electronic device, such as a mobile phone. The card, mobile phone or other device is held in front of a terminal and a wireless interface transits the payment information.
The initiative is part of a drive by Visa to harness new technologies that enable buyers and sellers to carry out transactions quickly, conveniently and securely.
Bruce Mansfield, Head of m-Commerce at Visa Asia Pacific, said, “Contactless payment is a natural evolution for payment. The technology removes the need to insert or swipe a payment card making it easier to pay in places where speed and convenience are important. We’re already working with a range of technologies including chip and infrared that provide us with a way to improve and enhance the way we make payments. These developments add value and utility to the traditional plastic card and enable us to extend secure payment to other kinds of devices such as mobile phones and PDAs.”
The first use of this new contactless specification is expected to be in Korea, where telecommunications company SK Telecom plans to develop mobile products based on the Visa specifications. SK Telecom and Visa are already working together to test the viability of infrared payment for mobile phone users.
