Oct 14, 2009

McDonald's swipe to pay - same benefits as contactless, but for all cards


I paid with my Visa credit card at a McDonald's restaurant in Singapore. With a single swipe, and no signature, the transaction was pretty much as fast as it would have been with a contactless card. How can the contactless tap and go value proposition hold up if you can get the same benefits with traditional magstripe cards that customers already have in their wallets?

2 comments:

Anonymous said...

contactless has no value added for fast food retailers if it is not linked with a "pre order" service.

It is pointless for a customer to save 8 secs paying with his contactless card if has been queuing 15 min...

value for customer = pre order + online payment + in store tap & go
(see Starbucks in the US and McDo in France)

Paul Brisk said...

Hi Aneace,
Agree with you regarding the cardholder experience at the point of sale. But there is one key difference which is an issue for the card industry as a whole. If I can copy that magnetic stripe then I can swipe to pay at McDonalds using a counterfeit card - and the fact that I don't have to sign or put in a PIN makes that an even easier for the fraudster. The bank will eventually detect this and have to cancel the card - then the cardholder will suffer inconvenience. The cost of stopping and replacing magnetic stripe cards that are copied is a huge cost to the card industry - and environments like magnetic stripe swipe to pay provides a tempting target for the fraudsters. With EMV contactless - we ensure that the card is not counterfeit, even if we stay offline.

Cheers,
Paul Brisk
Cotignac Consultancy