The country already has about 1.5 million credit and debit cards with “contactless” technology or payment by proximity, which consists of a radio frequency antenna that is incorporated into the plastic so that the payment is made when approached to the points of sale.
The amount was calculated by the Central Bank based on information provided by card-issuing financial institutions.
Payment by proximity gives the cardholder and traders the same security provided by the cryptographic chip EMV, but with the added advantage of making faster payments.
For the cardholder, this means ‘a better customer experience’ and for businesses it represents the opportunity for higher sales, by reducing the lines to pay,”
explained Carlos Melegatti, director of the Electronic Payments division of the Central Bank.
According to the official, the speed together with the payment security, are the perfect combination for a payment device such as bank cards, as customers can make their payments in a matter of seconds and without fear of losing security in their transactions.
In addition, with contactless technology, the customer does not have to give their card to someone else, which adds even greater security, because at no time will they lose sight of the card.
The incorporation of the payment by proximity in the bank cards is an initiative promoted by the Central Bank, in total coordination with the Ministry of Economy, the National Financial System and the international brands.
According to the Central Bank, although the circulation of contactless cards is a reality in the country, a similar effort on the side of the traders is yet to be made, since it’s necessary to complete the replacement of payment terminals at all points of sale.
The Central Bank established December 31st, 2018 as the deadline for all bank cards to have microchips or the antenna of payments by proximity, instead of magnetic strips.
Public transport will be one of the major beneficiaries from the incorporation of contactless payment technology.
Melegatti said that public transport generates approximately 700 million payment operations per year, hence the importance of positioning this means of payment in the country for the benefit of all.