Developed in conjunction with MasterCard in South Africa, the card allows for payments of goods and services at any participating merchants displaying the MasterCard with PayPass and/or MasterCard Cash logos anywhere in South Africa.
Simon Just, head of consumer cards at Absa, says, "We see tap-and-go or contactless payments as an innovative way to let consumers quickly and securely purchase their favourite items in this fast-paced world. The service offers customers and merchants speed, convenience and efficient payment for low value purchases. The primary benefit for the retailer is getting customers through the point of sale quicker, which translates to serving more customers."
To complete a transaction, the consumer simply holds his or her card near the point of sale (POS) reader for a transaction that happens in seconds, as neither a PIN nor a signature is required. Typically, this is a faster and easier process compared to handing the card to a cashier to be swiped through the conventional device.
While there are still only a few merchants in South Africa who offer the facility, the bank is driving hard to increase the footprint with its own merchant base.
"Consumers will soon start to notice contactless terminals appearing in a number of their favourite retailers. We launched the service to merchants a few weeks ago and are noticing a keen interest. We are now encouraging 'early adopters' to get their cards, load value and to try it out," says Just.
"Consumer acceptance of contactless payments and the point of sale infrastructure that is necessary to support these payments, is the first step towards mobile payments, where consumers will, in future, pay using their mobile phones in a similar way.
"These innovations also provide government, the transit industry and other participants in the economy with a platform for financial inclusion, that will change the way consumers pay," he concludes.
