: Mastercard Inc said it will reach a key milestone by January 2018 when all its debit cards feature contactless and a personal identification number (PIN)-enabled function, in a move to provide more convenience to consumers, prevent fraud and improved security.
Wider contactless acceptance is expected in Malaysia, with more merchants opening up to the technology, the American multinational financial services said in a statement.
"Malaysia is targeting for 30 per cent of all payment terminals to be contactless-enabled by 2020, the equivalent of nearly a quarter of a million terminals.
"The infrastructure is ready and so is the industry from regulators to banks and financial institutions," said Mastercard.
It added that more consumers today were going cash-free with contactless payments as they embraced the speed, convenience and security of tap and pay technology.
Citing market research, Mastercard said the global contactless payments market was expected to grow at a compound annual growth rate (CAGR) of 21.2 per cent from US$6.70 billion in 2016 to US$17.56 billion by 2021. (US$1 = RM4.23).
In Malaysia alone, Mastercard contactless transactions grew 5,002 per cent between January and August 2017 compared with the corresponding eight months of last year.
The average transaction value recorded between January and August 2017 was RM70 for debit cards, and RM97 for credit cards, with Malaysians using contactless payments mostly at food and beverage establishments (20 per cent), followed by hypermarkets (11 per cent), and clothing stores (10 per cent).
Mastercard contactless payments were accepted at more than 6.6 million locations in 97 countries.
"A simple tap of your card at a contactless-enabled terminal is all it takes to pay, faster than entering a PIN, allowing you to complete your transaction within a blink of an eye," said Mastercard.
On security, it said Mastercard has multi-layered security, with each transaction featuring a dynamic, one-time-only security code, which will be activated e only at the time of authorisation and constantly changes each time the card is used.
"This prevents thieves from re-using it for other transactions," it said.
It said contactless cards does not transfer the three-digit code on the back of the card or billing address to the electronic payment system.
"Safeguards are in place to bill you once should you accidentally tap twice," it added.