CONTACTLESS PAYMENT, A RFID DOMAIN AND ITS ACCEPTANCE BY CARD HOLDERS

Abstract

Th e target group in a consumer environment often perceives RFID technology as a threat. Th e question, however, is: does the perception of RFID contain the potential to become a threat to the economic success of the investment in such technology? Th e optimization potential of RFID technology - a driving factor in modern supply chain management - is increasingly opening up new market segments in other business processes. Among them are accelerated payments in the retail and service sector, for example the programs PayPass, ExpressPay and payWave issued by three global credit card companies or the new Girogo system for debit cards. Prototypes for the integration in smart phones are in the test stage already. Th e step of combining these two technologies opens up a mass market and off ers the opportunity of developing a successful application on a worldwide scale. Th is article examines the acceptance of RFID-based payment systems by the end user. It defi nes relevant factors based on existing literature and evaluates them empirically by using the Technology Acceptance Model in its version two. JEL classifi cation: D12, D81, L81. Keywords: RFID, TAM, acceptance, consumer, trade, retail, e-commerce, credit card, debit card, contactless, payment, process, risk, investment, radio frequency identifi cation, e-passport, survey, usefulness, ease of use, petrol station, gas station, PayPass, payWave, ExpressPay, Girogo, NFC.