ABSTRACT
One RFID application that is currently struggling for acceptance is use in the credit card industry. Initial pilot programs involving the use of RFID technology in credit cards began as early as 2003. As of the fall of 2006, RFID credit card applications were still not widely adopted despite signicant efforts on the part of a number of credit card companies and banking institutions. For example, only approximately 1 percent of the one billion MasterCards currently utilize its widely advertised PayPass card system. Despite this low utilization rate, MasterCard is not the only credit card company investing heavily in contactless cards. Visa’s equivalent card program is marketed as the Visa Wave. Similarly, American Express’s program is known as Express Pay. These programs are generically referred to as contactless payment systems. The systems are contactless in the sense that, if functioning properly, the card does not need to be passed through a magnetic stripe reader.
