Barclaycard join the battle of the digital wallets

The Barclaycard PayTag is the latest round in digital wallet battle. The PayTag is a mini, stick-on credit card which the company hopes will be attached to the UK customers mobile phones to use at ‘contactless’ terminals. This wave-and-pay technology has been available for a few years, allowing cardholders to make purchases at certain stores for up to £15, without using a Pin number.

This latest product, available to Barclaycard customers by the end of the year, remains some way short of mobile phone interactive banking. The Barclaycard PayTag will be offered to a select group of customers within the coming days, they will be contacted by post. The card has a sticky reverse side and its size is a third of a standard credit card. The card will not cost the customer any extra and will arrive alongside their regular card.

Barclaycard suggest sticking it to a mobile phone as most adults carry it at all times, but it can just as easily be attached to a key ring or wallet. Tom Gregory, from Barclaycard, said the product gives anyone the opportunity to use their phone as a credit card, without upgrading. If the idea is successful Barclaycard would approach a mobile phone manufacturer to suggest inserting a payment chip into a handset. The idea is yet to take off in the UK as it has in other places, like Japan.

Contactless mobile payment has been used in Japan since 2004. There was originally a £10 limit on wave-and-go purchases. Currently the limit is £15 however in June this is to increases to £20. This is the sort of amount spent on a debit card, not a credit card. It is obvious, here, that Barclaycard are encouraging clients to make their everyday purchases with a credit card.