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Contactless payments 'could wipe out chip and pin'
11 Jan 2010

The increasing popularity of contactless payment technology could one day see the current chip and pin debit card system scrapped, according to an IT consultancy director.

Dave Birch of Consult Hyperion commented to the Times that as cheques are slowly phased out in the coming years, it is conceivable that the chip and pin system may not be far behind.

He noted that this is because contactless payment technology "frees you from form factors". In addition to smart cards, contactless functionality can be added to hats, watches and mobile phone handsets.

"The card era that started in the 1950s is not the best structure for the connected world of the future," he said.

Australian analysis firm MWE Consulting noted that ATM withdrawals on debit cards have fallen to their lowest levels in six years, it was reported earlier this week.

The group's managing director Mike Ebstein commented that this could be a sign people are "beginning to move away from cash" and highlighted that 2010 could be the year that contactless technology makes a significant impact, the Australian reported