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Podcast: How FIs can score top-of-wallet placement with contactless cards

Contactless payments have caught on in the U.K., Canada and Australia, but they’re still in their infancy in the U.S. Fiserv's director of payment products explains who uses them and why and how FIs can capitalize on the trend.


| by Amy Castor — Editor, Networld Media Group

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Fiserv provides debit, credit, ATM, network and digital card management solutions to financial institutions of all sizes. Fiserv moves money and information in a way that moves the world, and is a global leader in payment and financial technology. With market-leading fraud solutions, proven digital card enablement capabilities, consultative services and our vast experience in integrating with core and digital systems, we help financial institutions on all industry core account processors achieve best-in-class results. Learn more at Fiserv.com.

Podcast summary

Now that chip-based EMV cards have become standard in the U.S., the next step is contactless payments. As more Americans pick up on the ease and speed of going contactless — already common in the U.K., Canada and Australia — FIs are stepping up their issuance of the dual interface credit and debit cards.

It's a trend that Jamie Topolski, Fiserv's director of payment card products, knows well. In a recent discussion with Suzanne Cluckey, former editor of ATM Marketplace, Topolski dives into contactless cards and their sudden popularity in the U.S., while also explaining how FIs can turn the trend to their favor. The key: convenience.

"You just hold the card within an inch or two of the terminal," he said. "It's remarkably faster than when you have to insert the chip in the terminal."

The offline authorization happens after the consumer puts the card away, Topolski explained. They don't have to stand and watch the terminal and wait for some annoying sound, signaling them to remove the card. "You could be putting your groceries in your cart, gathering your items, putting your wallet back in your purse, but your work is done, and that's why it seems so much faster," he said.

So why has it taken the U.S. this long to get into the contactless card game?

The U.S. market was under pressure several years ago to roll out EMV during a time when a lot of data breaches and credit card fraud was taking place, he said. "Ideally we would've started with contactless from day one, but it's more work, and we were under the gun."

He went on to explain the difference between EMV and contactless cards, which are often referred to as dual interface cards. "You'll see those terms used interchangeably, because the contactless EMV cards still have that chip visible on the front of the card," he noted.

In the case of merchants who don't accept contactless yet, consumers can still insert the chip. Additionally, contactless cards contain a thin antenna. "It's built in, sandwiched in very, very thin, and it's coupled with the chip — and that is what allows the card to communicate wirelessly without inserting the chip into the terminal," Topolski said.

Mass transit systems are early adopters of contactless cards, but really, any situation where you have to pay and run is ideal for the technology. "As far as I know, every subway I've been to in the U.S. now supports contactless transactions at the terminal," he said, adding contactless is also popular among fast food chains, like McDonald's, Starbucks and Dunkin'.

"Any place that you go into frequently, and even supermarkets, are now starting to roll it out because they are, again, getting people through the lanes quickly," he said.

To hear more, listen to the full podcast above.


Amy Castor

Amy Castor has more than 20 years of experience in journalism and mass communications. In the last several years, she has gotten particularly interested cryptocurrencies, blockchain technologies and other evolving forms of payment. Her work has appeared in consumer and trade publications throughout the U.S., including CoinDesk, Forbes, and Bitcoin Magazine. She is now the editor of ATMmarketplace.com and WorldofMoney.com

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