A tiny chip is set to replace a fistful of coins and notes for many everyday low-value payment transactions: from buying a daily paper or a cup of coffee, to paying a bus or Tube fare. Advances in smart card technology and falling unit costs mean the technical barriers have all but disappeared.

Demand for the latest generation of contactless payment solutions will be driven by consumers and retailers alike. But widespread consumer adoption will not only depend on maximising ease of use. Convenience will be essential. Merchants everywhere have to offer the option for customers to simply ‘tap and go’. Value top-ups must be easy or even automatic.

Building a profitable business model
The potential benefits are significant for many types of organisations: from conventional financial services providers to transport, retailers, telecoms, utilities and local councils. But there are many complex strategic, logistical and regulatory challenges for organisations to overcome along the way:

• What are the critical rules of engagement for a successful e-purse scheme?
• How can all parties involved make money, and how do the behavioural economics of consumers drive profitability?
• Where are the main costs in setting up a scheme, and how can these be minimised?
• What are the key compliance and tax considerations?

Download our recent white paper focusing on strategies and insights for introducing contactless payment, No time for change (PDF, 237 KB)

Related information
Smartcard frequently asked questions 
Press release: Pint of milk and top up my Oyster card please