Starbucks Plans to Accept Contactless Payment in the UK

The Starbucks coffee chain is the latest merchant to signal it will accept contactless payment in the United Kingdom, adding more momentum to the rollout there.

Credit card issuer and acquirer Barclaycard, part of Barclays bank, announced today it had signed a deal with the large coffee chain to accept contactless in selected shops starting next spring. Provided these pilots are successful, the chain will roll out contactless across most of its stores in the United Kingdom and Ireland. Starbucks has more than 700 stores combined in the two countries.

The Starbucks announcement follows an earlier announcement by McDonald’s, in January, that the fast-food chain would accept contactless payment at its 1,200 restaurants throughout the United Kingdom starting this summer, one of the first tier-one merchants to embrace the technology in the country.

“We’re seeing more and more people use cards for payment, and contactless will allow us to serve our customers more quickly and with greater ease,” Pete Blower, Starbucks’ technology services manager for Europe, said in a statement.

Starbucks accepts contactless in some other countries, but not yet in its largest market, the United States. It is currently rolling out bar-code based payment from smartphones stateside.

Barclaycard used today’s Starbucks announcement to promote its “Quick Tap” NFC service, which it announced last Friday with mobile operator Orange UK. Users of the service, which only is available on one NFC phone so far, will be able to tap their phones to pay for purchases of £15 (US$24.27) and less at Starbucks and other contactless outlets. They will also be able to tap contactless credit and debit cards.  

Barclaycard and Barclays, which is leading the contactless rollout in the United Kingdom, have together issued more than 11.4 million contactless cards, more than 80% of the total contactless cards issued in the United Kingdom, said the bank. Barclaycard’s acquiring arm accounts for most of the contactless terminals deployed so far, as well.

Visa Europe was also included in today’s announcement with Starbucks, but MasterCard Worldwide’s PayPass application will also be accepted at Starbucks. All told, more than 50,000 merchant location accept payWave and PayPass in the United Kingdom, according to Barclaycard, though few of them are part of large chains.

HEADLINE NEWS

USA Technologies Seeks to Bolster Services, Markets with Acquisition of Cantaloupe Systems

NFC TIMES Exclusive Insight – Unattended point-of-sale vendor USA Technologies expects to close its $85 million deal to acquire competitor Cantaloupe Systems next week, telling NFC Times the deal will add to USAT’s suite of services and expand its international reach.

Orange Cash Gets New Life as Part of Orange Bank App

NFC TIMES Exclusive Insight – As expected, Orange will continue offering its NFC-enabled Orange Cash Visa-branded card with the launch of its Orange Bank mobile service.

First HCE-Enabled JCB Cards to Hit Market in Taiwan in First Quarter

Nov 14 2017

NFC TIMES Exclusive Insight – Japanese credit card company JCB will participate early next year in a mobile wallet from the Taiwan Mobile Payment banking joint venture, marking the first time JCB will support host card emulation in a mobile payments service.

Canadians Take to Contactless Cards, but NFC Wallets? Not So Much

NFC TIMES Exclusive Insight – While a well-developed contactless card and POS terminal infrastructure and strong consumer take-up of contactless card payments has often been touted as the gateway to use of mobile payments, that is often not the case. Take Canada, for instance.

New York Approves Delayed Contract for Contactless Fare Collection, Clearing Way for Rides with NFC Wallets

NFC TIMES Exclusive Insight – The New York Metropolitan Transportation Authority board has approved a long-anticipated contract to enable riders to pay with contactless credit and debit cards, including cards loaded into NFC mobile wallets, by 2019–the largest transit authority to do so since Transport for London launched open-loop fare collection in late 2012.

Fitbit Chief Plans to Enable Entire Product Line for Payments with NFC; Challenges Lie Ahead

NFC TIMES Exclusive Insight – LAS VEGAS:  Fitbit CEO James Park today said the large wearables maker plans to enable contactless payments across its entire range of devices over the next few years using NFC technology, a move he said he hopes will help make contactless payments “ubiquitous around the world.”

Major League Baseball to Roll Out Availability of NFC Ticketing in 2018, but Will Stadiums Adopt the Technology?

NFC TIMES Exclusive – Major League Baseball in the U.S. may roll out NFC mobile ticketing next year as part of Apple Pay, although it’s unclear how many stadiums or other venues would be involved, sources told NFC Times.

Apple Promotes ‘Everyday’ Commerce for Apple Pay as It Seeks to Increase Transactions

NFC TIMES Exclusive Insight – LAS VEGAS:  As Apple continues to try to address what many observers consider to be a disappointing showing for its now three-year-old payments service, Apple Pay chief Jennifer Bailey played up the theme “Everyday (commerce) With Apple Pay,” during a keynote at the Money 20/20 fintech show Sunday.

Group Representing Big U.S. Banks Plans to Issue Own Tokens for Cards Carrying Major Brands

NFC TIMES Exclusive Insight – The Clearing House, a group of the largest banks in the U.S., announced its first plans to tokenize cards branded by a major network, as the banks seek to reduce their dependence on tokenization by the major card schemes.

Apple Watch Likely to Lag Behind in Tag-Reading Ecosystem

NFC TIMES Exclusive – As the NFC tag industry responds to iOS 11, Apple Watch isn’t drawing much focus, and use cases for tag-reading on the wearable remain limited.

Mobile Payments Contribute to Slow Decline of Cash

NFC TIMES Exclusive Insight – Mobile payments are one of the key factors driving the gradual replacement of cash with card and digital payments, according to the annual World Payments Report released this week by consulting and IT services firm Capgemini and major French bank BNP Paribas.

Apple Pay Finally Signs Up Second Major Bank in New Zealand

NFC TIMES Exclusive Insight – In certain markets, Apple continues to face resistance from major banks, which, among other things, do not want to participate in an Apple-branded wallet. That’s true in Australia and in such major Western European markets as France, Spain and Italy, where only one major bank in each country is supporting Apple Pay.