Contactless Dankort on the way – The Post

Contactless Dankort on the way

Starting next summer, card users will be able to wave and go

September 8th, 2014 2:55 pm| by admin

From July next year, Dankort-users will be able to make purchases of 200 kroner or less and not have to enter their pin number to complete the transaction. 

They won’t even have to put their card into a payment terminal. Just a quick wave will suffice.

NETS, the company that operates Dankort in co-operation with banks and retail, will be issuing new cards equipped with contactless payment technology.

Spend more faster
Contactless payment systems are credit cards and debit cards, key fobs, smartcards or other devices that use radio-frequency identification to make secure payments. The embedded chip enables customers to wave their card over a reader at the point of sale. 

Because no signature or PIN verification is typically required for contactless purchases, purchases take less time and research indicates that consumers are likely to spend more money due to the ease of small transactions. 

Some companies have estimated that the ease of payment has increased spending by as much as 25 percent in places like the UK and the US where contactless payment is already in use.

Chamber of commerce a major supporter
The Danish chamber of commerce, Dansk Erhverv, will contribute about 70 million kroner to the production and distribution of the new cards.

“This agreement means that Dankort is taking an important step into the future to remain a strong and preferred payment option for Danes,” Henrik Hyltoft, the head of Dansk Erverv, told Berlingske. “This is important for customers and retailers.”

READ MORE: Dankort terminals down nationwide

The first new cards will be rolled out in July of next year.

There are already a number of wireless payment options available to Danes, including virtual wallets in smartphones, so Dankort will have competition in the contactless payment market.

An agreement between NETS and Dansk Erhverv signed in 2013 commits NETS to guaranteeing that the Dankort is always up-to-date with the latest technology.