Payments

Wells Fargo introduces tap to pay cards, joins big bank move to contactless

  • The US has been slow in adopting new payments technology.
  • This announcement by Wells may encourage more people to use contactless.
close

Email a Friend

Wells Fargo introduces tap to pay cards, joins big bank move to contactless

Wells Fargo launched contactless consumer credit and debit cards. The new cards will allow customers to complete a transaction quickly with a single tap at millions of merchants, including transit systems, around the world that accept contactless payments Later this year, customers will also be able to tap to initiate an ATM transaction at Wells Fargo’s more than 13,000 ATMs across the nation.

What’s the big deal: Contactless cards have been de rigueur in many markets around the world for years. 90 percent of face-to-face credit card transactions in Australia, for example, are contactless. The US was slow in adopting chip and pin technology, which required merchants to use new hardware. Once that was in place, going contactless requires new types of cards to be issued.

US lags behind in adoption of new payment technologies

Wells Fargo is the number one debit card issuer by purchase and transaction volume, according to The Nilson Report. JPMorgan Chase said last year that it would move is entire card portfolio to contactless.

“The new contactless feature adds speed and convenience to the checkout experience. We believe customers will adopt this as an alternative to cash that is both simple and secure,” said Ed Kadletz, head of Wells Fargo Deposit Products Group. “We are excited to offer our customers – who use their Wells Fargo Debit Card more than 8.8 billion times per year – a new payment option that they can use at a growing number of merchants, as well as Wells Fargo ATMs.”

Where this is headed: Wells Fargo’s move to contactless should encourage more consumers to start using this technology. Many merchants experience a rise in transactions when they make contactless available. This technology may also replace cash transactions, too.

“The new contactless feature adds speed and convenience to the checkout experience. We believe customers will adopt this as an alternative to cash that is both simple and secure,” said Ed Kadletz, head of Wells Fargo Deposit Products Group. “We are excited to offer our customers – who use their Wells Fargo Debit Card more than 8.8 billion times per year – a new payment option that they can use at a growing number of merchants, as well as Wells Fargo ATMs.”

Transit is a great use case: Contactless is a technology that is made for people on the go. Using it to move through public transportation has been a major use case in European and Asian cities.

Several major US transit systems already accept contactless payments. Later this year, the New York Metropolitan Transit Authority’s has a planned 18-month rollout to support contactless payments at turnstiles and on buses across the city. The MTA will join Portland’s Tri-Met transit authority and Chicago’s CTA in accepting contactless payments.

0 comments on “Wells Fargo introduces tap to pay cards, joins big bank move to contactless”

Payments

Worldpay from FIS reduces barriers to entry into the crypto market with MoonPay partnership

  • Worldpay is working with crypto firm MoonPay to enable easier buying and selling of cryptocurrencies.
  • MoonPay will leverage Worldpay’s technology to allow users to purchase cryptocurrencies and NFTs with credit and debit cards.
Ismail Umar | July 28, 2021
Payments

QuickBooks introduces new payments hardware for small businesses as everyone guns for Square

  • Intuit has introduced a new innovative, inexpensive card reader targeting small businesses.
  • Square's rising dominance over the SMB payment ecosystem is increasing competition around SMB payments.
Zachary Miller | July 26, 2021
Payments

Emphasizing high APY, Amex debuts checking account for SMBs

  • Kabbage Checking offers one of the highest APYs available to SMBs with 1.1 percent interest on balances up to $100,000.
  • SMBs can also access a line of credit between $1,000 and $150,000.
Shehzil Zahid | July 07, 2021
Member Exclusive, Payments

Capital One launches new flexible payment options for small business customers

  • Cash flow problems are among the biggest challenges facing small businesses, particularly during the pandemic.
  • Payments startup Melio will provide access to accounts payable and receivable cash flow management tools for Capital One’s SMB customers.
Ismail Umar | June 29, 2021
Member Exclusive, Payments

Affirm’s new deal with Shopify bakes it into Shop Pay Installments

  • The partnership gives Affirm a new distribution route with access to 1.7 million merchants.
  • A Barclays report says investors are underappreciating the partnership but that there’s no need.
Shehzil Zahid | June 24, 2021
More Articles