Goodbye to cash

12:32pm Tuesday 13th May 2008

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THE cashless society is coming to York.

Instead of digging in their pocket or purse for a handful of coins, shoppers will soon be able to make small purchases simply by waving their credit card at a terminal - and without even having to key in a PIN number.

And the retail revolution looks to have made its first appearance in the city at MIND's charity shop, in Goodramgate, where a OneTouch contactless terminal was installed earlier this year by Barclaycard.

In common with many revolutions, this one has started slowly - without anyone as yet using the equipment to make a purchase in York, according to shop manager Nina Whitefield.

But this looks set to change soon, with Barclaycard planning to upgrade one million existing credits cards this year across the country.

The bank says that more than 4,000 retail outlets already have contactless terminals, but another 16,000 should have them by the end of the year as it is rolled out across the UK from London, where it was introduced last year.

"Many retailers and consumers are now realising the benefits of fast, secure contactless payments and we are confident that interest will continue to grow across the UK," said Barclaycard's chief marketing officer, Elizabeth Chambers.

A spokeswoman said the technology provided a fast and convenient method of payment on all transactions of £10 and under.

"Cardholders simply need to make OneTouch of their card against the reader instead of entering a PIN or signature," she said.

For retailers, it means faster transaction, leading to fewer delays and shorter queues of customers, and no need to give out customer till receipts and less time spent cashing up the coins.

She said that if a card was stolen, payments would be stopped as soon as the bank was informed by its owner, but the technology would also pick up unusual transactions being made and then demand that customers key in their PIN number to confirm that it was them using the card.

She said that other retailers now set to go live with terminals included The National Trust, which would roll out 500 terminals in its gift shops, tearooms, restaurants and admission payment points across the UK.

"The OneTouch technology is particularly suited to outlets where fast and convenient transactions are needed such as fast food outlets, coffee shops, newsagents, off licences, bars, pubs, parking facilities and vending machines."

Robert Monteath, managing director of Mind, said that low value items for £10 or under made up the majority of the charity shops' sales.

He said: "With the contactless OneTouch terminals in store, our shoppers will be able to pay for these items much more conveniently. It will help us encourage return visits and spontaneous purchases - all of which boosts our fundraising for Mind."