Cardless transactions on the rise

Our wallets could soon be getting thinner and not because we have no money, but thanks to the new technologies which mean that we no longer need to carry cards.

Just as we’re getting to grips with contactless payments, two banks in Australia have embraced new technology which allow you to withdraw cash from ATMs without a card. Since launching last month, the Commonwealth Bank has reported that more than 15,000 transactions were made in May using cardless transactions. Customers simply go the Commonwealth Bank app on their mobile phone and request a transaction code, which is then keyed into an ATM, along with a one-off pin. Westpac is also introducing cardless transactions, although customers will have to call their bank and request a code.

Also growing in popularity are virtual credit cards, a series of codes (card number, expiry date and CCV) which allow you to make transactions online as you would with any credit card. The virtual card is prepaid, so you can only spend the pre-determined amount, but you can shop safely online without divulging any credit card details. Virtual cards can be purchased online, where you will be emailed or sent an SMS with details. You can also buy vouchers, similar to iTunes, at participating outlets which you can then use online. This is a good way to use services which may have an ongoing subscription, but for which you only wish to pay for once.

For a further idea of how such ‘cards’ work, visit VirtualCard.com.au

Do you think cardless transactions and virtual credit cards are safer than traditional methods of withdrawing cash and paying for goods online? Would you be happy using either of these technologies?

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