More NFC tags to hit Australia for Christmas

With the Commonwealth Bank announcing it will support NFC tags that enable contactless payments, smaller banks have now revealed that they too are completing trials and plan to expand by the end of the year.

Cuscal and bankmecu are nearing the end of a trial of near-field communication (NFC) tags backed by Visa payWave technology.

The tags attach to the back of a mobile phone and are linked to existing Visa accounts. They are similar to the tags recently rolled out by the Commonwealth Bank and Coles for MasterCard's Pay Tag technology.

The trial has been running since September, and Cuscal customer bankmecu expects to extend this to its customer base over the next few months.

"With this pilot now successfully complete, we are excited to be able to support our mutual sector clients to extend this novel mobile payment solution to their 2 million collective cardholders," Cuscal general manager of product and service Adrian Lovney said in a statement.

Other Cuscal customers seeking to implement the technology include People's Choice Credit Union.

"Many of our clients, including bankmecu, are intent on rolling this out to their cardholders in the coming months, potentially even before Christmas," Lovney said.