Should You Use the Contactless Card?

News has reached the KiranTrivedi blog that use of the contactless card has reached record levels and this prompts me to wonder, should we really be using the contactless card, or is it a risk to your personal finances?

The contactless card is exactly what you think it is – a revolutionary trick of technology which allows you to pay for goods or services on your card without having to put it into a machine. Instead you hold the card next to a device. It’s like a scanner at a checkout.

Exceeds £100 million a Month

It’s certainly proving popular with consumers, as The UK Cards Association has announced this week that spending with the contactless card has exceeded £100 million in one month alone, for the very first time.

This rising technology was first introduced by High Street mainstay Barclays, but has since rapidly spread among UK financial institutions. The Bank seems optimistic about the card, as it has said that it expects spending via this latest financial technology to total over £600 million this year.

This view is certainly one that is shared by Graham Peacop at The UK Cards Association. Peacop commented  to  the BBC that: "Whether it's to buy a cup of coffee or pay for a trip on the bus, today's figures show that consumers are voting with their wallets and find contactless cards a very convenient way to pay."

Kiran Trivedi on the Pros and Cons of Going Contactless

Despite the popularity there are a number of concerns about this game changing invention. The first is that it’s so new that it won’t benefit customers in the long run to invest in one. However, as businesses up and down the country embrace the new technology, this problem should clear itself up.

The larger concern is safety. Banking is precarious enough, and it’s a simple task for any determined criminal to hack into your bank account. Is this new technology, which is dependent on the sharing of information through the airwaves, really safe at the moment for consumers to embrace?

So there are a number of problems with the contactless card, Kiran Trivedi readers. However, as I pointed out earlier, your personal finances are always at risk with banking. That’s why you take steps to protect yourself.