The Commonwealth Bank of Australia (CBA) is the first bank in the country to trial MasterCard's PayPass contactless payment technology as an alternative to low-value cash payments.
CBA says around 35,000 customers in New South Wales (NSW) will take part in the six month trial and will be issued new cards featuring MasterCard's RFID PayPass technology.
The contactless payment cards can be used at more than 150 merchants, including 7-Eleven and Subway outlets to pay for purchases under $35.
Michael Cameron, Commonwealth Bank group executive, retail banking services, says the 'tap-n-go' technology will enable hassle-free small credit card transactions, providing customers with a fast and convenient alternative to cash.
"This new payment option will be great for small businesses, as well as customers. Less money handling and quicker processing of customer transactions could result in smaller queues for many retailers," says Cameron. "Local retailers have been overwhelmingly supportive of the initiative, and we’re expecting that more will join the trial in coming weeks."
MasterCard says to date there are more than five million PayPass cards and devices with more than 25,000 merchants accepting PayPass globally.