Keeping up with technological advancements, First National Bank has introduced Near Field Communication technology to its services. Credit cards issued by the bank now feature an NFC facility. Popularly known as “tap and go,” the cards adhere to Visa standards and only operate on very close contact with an enabled point of sale.
A benefit associated with this technology is that it allows the cardholder to make contactless payments.
According to the Pew Research Centre, in 2013, 68% of Kenyans and 29% of South Africans said “they regularly make or receive payments on their phones.” This technology bodes well for the mobile phone industry as more Africans are expected to use their smartphones to make payments in the near future.
Chris Labuschagne, CEO of FNB’s credit card division said: “FNB can confirm that all new FNB credit cards that are being issued are enabled with the contactless payment feature.”
FNB currently has a R200 ceiling on the value of a contactless transaction. FNB customers ‘ability to use the facility is dependent on whether the retailer’s point-of-sale system supports NFC functionality. If the retailer doesn’t have the facility, the card works via the conventional chip and pin.
Customers and retailers will be happy to know that this system allows for 15% faster transactions. If a card is lost or stolen, FNB protects the customer against fraud loss.
FNB customers won’t yet be able to use their NFC-enabled credit cards to make purchases abroad.
The bank is keeping up with the evolution of mobile payments in South Africa however.
Delaine Patrick, chief information officer of FNB’s credit card division said: “We are working on a number of mobile initiatives, which does include NFC.”