Barclaycard plans to release a credit card that incorporates a London Transport Oyster card.
Customers will also be able to pay for low-value transactions without having to sign or enter a PIN number, using so-called "wave and pay" technology and contactless readers in participating shops. The credit card itself is based on standard Chip and PIN technology, though Barclaycard reckons the development takes it one step further towards the release of truly contactless credit cards.
Providing trials are successful, Barclaycard plans to roll out its next-generation credit cards to its customers in London next year. The idea of combining an Oyster card with Barclaycard and Barclays Connect Visa cards follows an exclusive contract between Barclaycard and TranSys, the consortium which runs Oyster card in partnership with Transport for London (TfL), due to run for at least three years.
Antony Jenkins, Barclaycard’s chief executive, explained the rationale for combining an Oyster card and credit card. "London has seen huge success with the Oyster card from TranSys and TfL - in much the same way as cards have transformed many other consumer payments, it’s difficult to imagine how we managed beforehand. Putting Oyster and Barclaycard together makes life even easier for Londoners and takes our customers an important step closer to fully contactless card payments elsewhere," he said.
Contactless credit cards have inspired security concerns, particularly in the US but Barclaycard said its system is built on different technology established by Visa, that was more secure. ®