Contactless and Prepaid Cards

As part of the National Payments Plan, the Payments Council agreed to actively monitor the development of the contactless and prepaid card markets. This included a review of the contactless and (open-loop) prepaid markets in October 2009. Eighteen organisations submitted evidence, including payment service providers, a card scheme, retailers, transport operators and consumer organisations. A copy of the review can be read here.

Responses to the review generally accepted that the contactless and prepaid markets are still developing and that most aspects are best left to market development and the organisations already leading it.

However, a number of areas were identified where it was clear that the Payments Council might have a role. These included:

• Development of consumer information
• Helping consumer organisations become involved with the development of the market
• A request from the UK Mobile Contactless Forum to engage with the Payments Council
• Standards and interoperability issues 

Therefore, the Payments Council board has agreed to play a more active role, focusing on these areas.

The market will be reviewed again by the end of 2011 to consider changes since the first review.