NAB rolls out contactless terminals

NAB rolls out contactless terminals

Summary: National Australia Bank has announced that it will roll out systems to over 500 Melbourne merchants this month, which will enable them to take customers' payment when they hold their cards up to a reader, but has stopped developing technology for payments via mobile phone.

SHARE:

National Australia Bank has announced that it will roll out systems to over 500 Melbourne merchants this month, which will enable them to take customers' payment when they hold their cards up to a reader, but has stopped developing technology for payments via mobile phone.

One of the new readers
(Credit: NAB)

Customers won't have to sign or enter their PIN for transactions under $100 for Visa chip cards with the new payWave feature, or under $35 for cards with the rival Mastercard technology. For transactions over those amounts, signature or PIN will be required.

NAB will be planning to have deployed 2500 readers out to merchants by Christmas this year, which was expected to aid those retailers — businesses such as convenience stores, petrol stations, fast food outlets and supermarkets — in their busiest time.

NAB believed the technology provided multiple benefits for merchants and customers, including the reduction of their time spent waiting in line. Transactions could be three times faster than paying with cash, the bank said.

"With Visa payWave, customers don't need to juggle loose change or even take the card out of their wallet for it to work," Visa's general manager for Australia and New Zealand, Chris Clark, said in a statement. "We believe contactless payments will transform the retail environment in much the same way that contactless tolls have reduced traffic congestion."

The roll-out has come off the back of trials with Telstra and Visa last year. The bank had also been trialling contactless payments via mobile phone, made possible by downloading a software application to a phone SIM. However, despite positive results from a three-month trial of this technology which found that 90 per cent of participants were happy making payments using the mobile technology, the bank said mobile payments weren't on the cards.

"Mobile payments rely upon card issuing companies and telcos positioning product together," a spokesperson for the bank said. "We are not pursuing development of this at this point in time."

Topics: Telcos, Banking, E-Commerce, Hardware, Mobility, Telstra

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

16 comments
Log in or register to join the discussion
  • Finally, can go and use something other countries in the world have!

    It's exciting to see contactless finally is available here in Australia. I'm certainly planning to go and use my cards there to see how it goes! Our government should really catch up on the transportation available on those T- or C- cards....
    anonymous
  • lost/stolen cards?

    If I don't need to enter a pin or sign anything for transactions below $100... what if my card gets lost/stolen? Can the thief rack up lots of small transactions without needing to authenticate?
    anonymous
  • security

    I like the fact that a merchant can steal your money without you even taking your wallet out of your pocket. nice one.
    anonymous
  • NAB rolls out contactless terminals

    The solution is called a Faraday Cage, a wallet with a wire mesh electromagnetic screen. Don't go near a NAB terminal without one.
    anonymous
  • security

    What happen if you have few cards in your wallet?
    anonymous
  • Crazy!

    Thats absolutely ridiculous, I cant believe it. The purpose of adding a PIN option to authorise transaction on your credit card was primarily for added security, this just and creates another hassle for consumers.
    anonymous
  • Look at the big picture!

    If you have been to other countries like UK (Oyster transportation & payments ) and Hong Kong (Octopus transportation & payments) they already have advanced payment technologies like this. Commonwealth Bank has also issued their cards with PayPass. This is a mature technology we are talking about and I'm sure those sceurity things would have been thought off and dealt with!
    anonymous
  • 1 Billion expense

    To minimize the use of PIN numbers and staying in line to pay for something. Oh and you do not need to show your card either. "With Visa payWave, customers don't need to juggle loose change or even take the card out of their wallet for it to work," Visa's general manager for Australia and New Zealand, Chris Clark, said in a statement." How incredible and to me stupid to spend this amount for no-security what so ever. If you loose your card and the finder can use it .
    Is that why most other companies now charge anything from $2.20 to 4% of the amount for paying by credit card. Is that why over $3000.00 credit per person in Australia owes to the financial institutes.
    GO BACK TO PAYING CASH
    anonymous
  • Looking at the big picture ...

    "This is a mature technology we are talking about and I'm sure those security things would have been thought off and dealt with!"

    What, you mean like RFID copying, online fraud, web banking instabilities, cross-site scripting in online commerce sites, and insecurities in online databases leading to identity theft. Would you call these things of the past?
    anonymous
  • not the same scale

    Oyster, Octopus, etc. (and even SmartRider in Perth) are all for tiny paymetns fo a few bucks where the consequence of a lost card is not that severe. However, NAB is talking about payments up to $100.
    anonymous
  • I am sure this will be sold as "customers asked for it and we answered." As much as no-wait payments would be nice, lowering security is a no-no; and whoever dreamt of debiting my card from within my wallet?
    I say spend the money on proper security (Serge Humpich will not be forgotten), or save it to lower point-of-sale commission.
    Anonymous Coward-79ae2
  • Just imagine walking past a disguised 'rogue' scanner and being billed for multiple sub $100 values. No imagine some dodgey business does the same at their checkouts...

    Contactless, is a mistake. There is no clear physical approval for the transaction (no contact, no signature, no pin) which makes the dispute process a nightmare.
    Scott W-ef9ad
  • Walk in the door, get charged. Walk out the door, get charged. Hey, doesn't that sound like a new banking charge?

    Walk into the bank, be charged. Go to the counter, get charged. See the manager, get charged. All without having to agree, sign, or pin anything!!!!
    Scott W-ef9ad
  • Charge them all!
    Scott W-ef9ad
  • The bank and retailers have no interest in your security, as long as it's quicker and cheaper for them to make money.

    Contactless payment poses no risks to banks and retailers, the risk is all put onto the customer.
    Scott W-ef9ad
  • Both comments above seem to have forgotten it is the Bank's who wear the fraud rather than the cardholder. Why does everyone think this is a problem for lost cards when we all seem to be happy with the risk of a 16 digit number on one side of the card and the CCV on the other.
    Iain-aef72