Contactless retail payments
Contactless payments can be made with contactless-enabled debit or credit cards or by a mobile phone that has a contactless payment app installed. By now 62% of the total number of cards and 40% of the total number of payment terminals features the technology for contactless payments. Paying by mobile phone in shops has not yet been widely adopted, but several banks and one telecom provider already enable this form of payment.
No PIN is required for purchases under EUR 25, making these payments much quicker than standard debit card payments. Safety is also a significant benefit of contactless payment. Not having to insert the card into the payment terminal makes skimming impossible and increases safety, and there are limits to the amounts that can be paid without having to tap in a PIN. Despite some concern about safety among consumer organisations, no fraud has as yet been detected with contactless payments in the Netherlands.
The number of contactless payments is growing rapidly thanks to the ease of use. Following the introduction in 2014, the number of contactless payments in January of this year accounted for some 12% of the total number of debit card payments (see Figure 1).
Figure 1 - Contactless payment in the Netherlands