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Two thoughts: 1) Contactless uses (needs) the same terminal technology as Apply Pay & Android Pay. So all three are in the same boat, and benefit from the expa

Two thoughts: 1) Contactless uses (needs) the same terminal technology as Apply Pay & Android Pay. So all three are in the same boat, and benefit from the expansion of the others. 2) Just speculating, but Contactless will probably move towards a PIN or something of that nature. The whole payment industry is moving towards 2-factor. Contactless by itself is not 2-factor.

joosters 11y ago
Point 1 is why I think Apple Pay & others will be more of a niche - until the terminals become common, you can't rely on them, but once they are common, contactless cards become just as useful. I used to be skeptical of contactless cards because of the lack of 2-factor. I thought it would be a liability (if my wallet gets stolen, now the thief can use my cards). However, the UK banks are quite vocal about promising to repay you if this happens. I've never had to put this to the test, luckily. Also, there is still an element of 2-factor auth. Occasionally, contactless will ask for a PIN confirmation (perhaps random, or perhaps if the bank thinks the payment seems odd). A new card of mine refused to work until I had made at least one PIN payment with it, for instance. Finally, there are low contactless payment limits - £30 right now. But these have been steadily rising as banks become more confident with their fraud systems. So, it seems that the payment industry is happy with the system.
- jonknee 11y ago
  > Point 1 is why I think Apple Pay & others will be more of a niche - until the terminals become common, you can't rely on them, but once they are common, contactless cards become just as useful. Why is the extra thing you have to bring with you and probably use a PIN for "just as useful"? Mobile based systems are also interesting because you can just as easily use them for app based sales. Anything to reduce the friction of someone giving you money is going to be a welcome thing for retailers.
  - joosters 11y ago
    Because you almost never need a PIN, and you will already have it with you to use in less advanced payment locations... As for app based sales, they exist today just fine with credit cards.
- BukhariH 11y ago
  I really don't agree with your view at all. I actually think that banks in the future will stop issuing physical cards altogether and will rely on virtual cards linked with Apple Pay, Android Pay or some other contactless based system.
spearo77 11y ago
re: 2) I think the apple watch is considered 2-factor, where you've already cleared the first factor by unlocking the watch with your passcode (or linked phone unlock)?
Symbiote 11y ago
Contactless was introduced by the European banks well after Chip+PIN, to speed up low-value transactions. (5 years after in the UK, but more like 10 years to become popular.)

joosters 11y ago

Point 1 is why I think Apple Pay & others will be more of a niche - until the terminals become common, you can't rely on them, but once they are common, contactless cards become just as useful. I used to be skeptical of contactless cards because of the lack of 2-factor. I thought it would be a liability (if my wallet gets stolen, now the thief can use my cards). However, the UK banks are quite vocal about promising to repay you if this happens. I've never had to put this to the test, luckily. Also, there is still an element of 2-factor auth. Occasionally, contactless will ask for a PIN confirmation (perhaps random, or perhaps if the bank thinks the payment seems odd). A new card of mine refused to work until I had made at least one PIN payment with it, for instance. Finally, there are low contactless payment limits - £30 right now. But these have been steadily rising as banks become more confident with their fraud systems. So, it seems that the payment industry is happy with the system.

jonknee 11y ago
> Point 1 is why I think Apple Pay & others will be more of a niche - until the terminals become common, you can't rely on them, but once they are common, contactless cards become just as useful. Why is the extra thing you have to bring with you and probably use a PIN for "just as useful"? Mobile based systems are also interesting because you can just as easily use them for app based sales. Anything to reduce the friction of someone giving you money is going to be a welcome thing for retailers.
- joosters 11y ago
  Because you almost never need a PIN, and you will already have it with you to use in less advanced payment locations... As for app based sales, they exist today just fine with credit cards.
BukhariH 11y ago
I really don't agree with your view at all. I actually think that banks in the future will stop issuing physical cards altogether and will rely on virtual cards linked with Apple Pay, Android Pay or some other contactless based system.

spearo77 11y ago

re: 2) I think the apple watch is considered 2-factor, where you've already cleared the first factor by unlocking the watch with your passcode (or linked phone unlock)?

Symbiote 11y ago

Contactless was introduced by the European banks well after Chip+PIN, to speed up low-value transactions. (5 years after in the UK, but more like 10 years to become popular.)