Apple AAPL -0.56% is getting ready to launch its contactless payments service in the UK this week, but one of the country’s main banks has snubbed the iPhone maker to go its own way.
Barclaycard, part of Barclays Group, is launching a set of contactless payment gadgets that anyone with a debit or credit card registered with Visa V +0.19% or MasterCard MA +0.05% can wear, attach to their keys or stick onto their phone to make contactless payments too.
The bPay wearable payment devices go on sale from July 1 on a website set up by Barclaycard, and consist of a wristband costing £25, a key fob costing £20 and a sticker for £15. It seems likely that most people who buy the rectangular sticker will place them on the back of smartphones to turn them into digital wallets.
Barclaycard, part of Barclays Group, is launching a set of contactless payment gadgets that anyone with a debit or credit card registered with Visa V +0.19% or MasterCard MA +0.05% can wear, attach to their keys or stick onto their phone to make contactless payments too.
The bPay wearable payment devices go on sale from July 1 on a website set up by Barclaycard, and consist of a wristband costing £25, a key fob costing £20 and a sticker for £15. It seems likely that most people who buy the rectangular sticker will place them on the back of smartphones to turn them into digital wallets.
The bPay wristband can be topped up by any debit or credit card that’s registered with Visa or MasterCard. (Photo via Barclays)
Each can be pre-loaded with up to £20 in cash and can be used on any contactless payment till or London’s extensive public transportation network, which last year started working with contactless cards.
From September, the maximum limit to contactless payments will rise to £30. And for those who don’t want to keep topping up their bPay device, there’s an auto top-up feature to enable.
Barclays is only the latest large company to rival Apple Pay with its own offering.
Samsung is expected to launch “Samsung Pay” with the new Galaxy Note 5 in September, and other banks like La Caxia in Spain have launched their own payment wearables that can be topped up via a mobile app.
The SIM card manufacturer Gemalto also has a side business making a range of payment wristbands that sports clubs can sell for use inside and outside of stadiums.
Barclaycard first launched its bPay wristband in June 2014 at the Pride festival in London and says registrations spiked the following September when Transport for London started accepting contactless payments. Barclays hasn’t said how many customers opted into wearing the bPay band.
Barclaycard will make money from the service by taking a small percentage of each payment transaction made, known as an interchange fee. However, ”the majority of income will be from the sale of products, at least in the early stages,” says Barclaycard spokesman Tom Foxton.
From September, the maximum limit to contactless payments will rise to £30. And for those who don’t want to keep topping up their bPay device, there’s an auto top-up feature to enable.
Barclays is only the latest large company to rival Apple Pay with its own offering.
Samsung is expected to launch “Samsung Pay” with the new Galaxy Note 5 in September, and other banks like La Caxia in Spain have launched their own payment wearables that can be topped up via a mobile app.
The SIM card manufacturer Gemalto also has a side business making a range of payment wristbands that sports clubs can sell for use inside and outside of stadiums.
Barclaycard first launched its bPay wristband in June 2014 at the Pride festival in London and says registrations spiked the following September when Transport for London started accepting contactless payments. Barclays hasn’t said how many customers opted into wearing the bPay band.
Barclaycard will make money from the service by taking a small percentage of each payment transaction made, known as an interchange fee. However, ”the majority of income will be from the sale of products, at least in the early stages,” says Barclaycard spokesman Tom Foxton.
The bPay wristband, key fob and sticker will make contactless payments of more than £30 from September. (Photo via Barclays)
From August, Barclays’ payment device will also go on sale from CycleSurgery and RunnersNeed retail outlets. If any of the bPay devices are lost or stolen (a bigger problem if the auto top-up feature is enabled), users can cancel them by via the app, bPay website or phone.
“All payments come with the same fraud protection that is applied to contactless cards and customers are 100% financially protected against fraud as long as they have not been negligent,” Foxton says.
The Brits have gone crazy for the act of simply holding a card at a till to pay for something. The number of contactless payments more than tripled in 2014 according to the UK Cards Association, with the UK public spending £2.32 billion using the technology.
“All payments come with the same fraud protection that is applied to contactless cards and customers are 100% financially protected against fraud as long as they have not been negligent,” Foxton says.
The Brits have gone crazy for the act of simply holding a card at a till to pay for something. The number of contactless payments more than tripled in 2014 according to the UK Cards Association, with the UK public spending £2.32 billion using the technology.
