Visa Hails Swiss NFC Pilot Success

Credit Suisse, PostFinance, SIX Multipay, Swisscard, Swisscom and Visa Europe have completed a pilot study of contactless payments using Near Field Communication (NFC)-enabled mobile phones incorporating Visa payWave card payment technology. In the pilot, which was held in Switzerland, over 90% of those who took part said they liked the ease and convenience of the technology. The same percentage also said they would use the technology when it becomes commercially available. These figures should, however, be weighed against the fact that those taking part in the pilot were employees of three of the companies involved.
Visa payWave allows payments to be made in under a second. Using short-range wireless technology, payment details are securely exchanged between a contactless chip card and a specially adapted point-of-sale terminal. With Visa payWave, a mobile phone or payment card is waved in front of the terminal to buy every-day, low-value items, with no need for it to be physically swiped or inserted into a point-of-sale device.
From September to November 2008, employees of Credit Suisse, Swisscard and SIX Multipay, could pay in their companies’ staff restaurants using their NFC-enabled mobile phone or contactless Visa credit card. The aim of the pilot was to test the technical and operating feasibility of contactless payments, as well as usability and preference of the Swiss consumers.
The pilot showed the different factors that are essential for the successful roll out of the technology. These include a broad range of acceptance locations. Being able to pay for small-ticket purchases in busy locations such as kiosks, in car parks and for public transport was seen as particularly advantageous. Cashiers in the restaurants confirmed that the contactless technology accelerates the buying process, in comparison to using cash.
“Our projects across Europe demonstrate a strong interest in payment solutions with mobile phones and consumers’ acceptance of modern payment methods offering high standards of speed, convenience and security,” says Sandra Alzetta SVP, Innovation, New Product and Channel Development at Visa Europe. “Pilots such as these help us to gauge consumers’ preferences so that we can respond quickly when the market is ready with more NFC-enabled mobile phones and with a broad point-of- acceptance network.”
In the next phase of the pilot, a working group will gauge the best available solutions for expanding the number of acceptance points in Switzerland.
There’s more information about Visa Contactless here.