FNB has announced this morning that all of the credit and debit cards it issues will support contactless payments.
FNB customers with the supported cards are able to tap them at pay points for transactions of R200 or less, rather than going through the process of sliding them into credit card machines and entering a PIN. Payments for more than R200 are supported, provided the customer inputs a PIN to verify the transaction.
“Payments are around a third faster than normal PIN-based transactions, meaning less time spent in queues and the fact that the customer’s card never leaves their hand gives a greater level of security,” chief executive officer of FNB Credit Card Chris Labuschagne said in a statement.
To address security concerns, FNB has said that the cards feature encryption which prevents the contactless data on-board the card being stolen and then reproduced.
Cards supporting contactless payments from FNB have been in the market in May 2015 and the institution reports that as many as 1 million supporting cards are currently in the market.
“We are expecting to see much wider adoption as customers become accustomed to the contactless technology, and more merchants are geared towards these types of payments,” Labuschagne said.
The use of this new method has increased according to FNB, which says it has seen average contactless transactions climb to 2.5 transactions per user per month in August 2016 compared to 1.5 payments in May 2015.