CBA launches 'e-tag' credit card Email Print Normal font Large font April 5, 2006 - 5:04PM
Advertisement AdvertisementThe Commonwealth Bank of Australia (CBA) will be the first local bank to trial a new credit card system that allows customers to use their cards like tollroad e-tags.
The MasterCard PayPass system has a small chip and antenna inside the card, which enables cardholders to swipe it on a special terminal to complete a purchase.
CBA group executive for retail banking services, Michael Cameron said the new technology didn't require a card PIN or signature for transactions under $35 and would speed up transaction times.
"MasterCard PayPass uses state-of-the-art technology similar to e-tags used by motorists to pay road tolls," Mr Cameron said.
"Cardholders simply hold the `tap-n-go' credit card up to a MasterCard PayPass terminal on the merchant's counter, wait for a beep, and the purchase is done," he said.
Mr Cameron said the PayPass has the same security measures as existing credit cards.
"The card doesn't actually leave your hand when you make purchases, you swipe it yourself, so there's no chance you'll be exposed to the skimming issues that are out there today," he said.
From today, some 35,000 CBA customers will take part in a six-month trial involving over 150 stores on the New South central coast, Sutherland Shire and Wollongong.
MasterCard group head of product sales and delivery, Shuan Ghaidan said the PayPass system has been successful in the United States and Asia.
He said in those markets and Australia, the main aim was increase transaction times.
"PayPass is great for fast transactions and that's where we've targeted," Mr Ghaidan said.
"It probably isn't so relevant in restaurants and department stores, where the sales process takes a while, with the extra half a minute it takes to get your card swiped," he said.
"But in a McDonald's or in the fast food, drive through areas, it really makes a difference."
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