Last month the UK entered a new era for contactless payment, which effectively means consumers will be asked for verification by PIN after five contactless transactions. VI spoke to Worldline’s Paul Weston about the changes and the significant impact it might have on the vending industry.
The new legislation, the second Payment Services Directive (PSD2) came into play on March 14 after a six-month delay by the Financial Conduct Authority (FCA) and means Strong Customer Authentication (SCA) will be enforced for online transaction.
This new requirement could affect thousands of vending machines across the country which have a contactless payment device but no facility to enter a PIN. The danger is that customers and transactions may be lost on the basis that payment has not been accepted.
“You could end up with a situation where you keep tapping your card and then walking away dissatisfied, not knowing whether you card has been billed. This will restrict the market and its ability to sell goods,” Mr Weston contends.
While the new regulation is intended to enhance the security of payments and limit fraud during this authentication process, there will be those in the vending industry who might be caught out.
Many of these have been eager to hear more and through the Automatic Vending Association (AVA) Worldline has been able to brief members and also advise them on a solution the company has to minimise any disruption the new legislation may create.
Worldline works closely with a number of vending companies from small family run businesses right up to global household entertainment companies in the supply of payment terminals for the unattended environments.
However, its expertise in UK transport – the companymanufactures and produces train station ticket vending machines – has enabled Worldline to examine footprint, size of terminals and cost of manufacture to come up with a new 3-in-1 payment terminal.
Mr Weston explains: “What we’ve done through our experience of knowing terminals and looking to cut costs is to reduce that down into one terminal – the Valina – the footprint is a lot smaller; it has PIN on glass; it has a contactless reader built into it; and it also has a magstripe card reader facility.
“It’s much more effective at taking payments and has the ability to help our vending companies to accept payments where at the moment they use contactless only.
“This facility to take a PIN is a very important thing for the vending industry and we are now seeing a number of people coming forward to find out how they can get around it.”
There will be those in the vending industry who have invested heavily in contactless payment and are happy with their investment and how it will affect their custom, however for those who have some concerns about losing customers, a solution such as Worldline’s might be for them.