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News in-depth: Barclaycard unveils mini contactless credit card
20 Apr 2012

Barclaycard has launched a new mini credit card which can be stuck to a phone or other device to carry out contactless payments.

The firm's new PayTag device, which is around a third of the size of a traditional credit card, can be attached to any mobile device and will be linked to a customer's credit card account.

Consumers can then pay for any goods or services worth £15 or less at a range of food outlets, retailers and on public transport by simply swiping the PayTag against the provided reader. The contactless payment threshold is set to rise to £20 from June.

David Chan, chief executive of Barclaycard Consumer Europe, said: "More than half of us say that the item we're most lost without is our mobile phone, so we're giving people the option of using them to make easy, convenient, everyday payments without the need to upgrade their current handset."

Unlike current contactless cards, users of PayTag will not be required to enter a pin after every few transactions as Barclaycard has claimed it comes with the same 100 per cent fraud protection as its other card. The firm has also promised to refund anyone who has funds taken from their account by a fraudster.

Britons will be able to use the PayTag in a range of stores, including Pret A Manger, McDonalds, Boots and The Co-operative.

Londoners will also be able to use the technology to pay for their travel as Transport for London is currently upgrading all Oyster card readers across the capital to make them compatible with contactless-enabled bank cards and mobile phones.

All of the capital's 8,000 buses are expected to accept the technology by the end of the year, with the Tube, DLR, Tram and London Overground network all set to follow in 2013.

Last month, Barclays launched a new payments service called Pingit that allows Britons to send and receive money using a mobile app.

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