Contactless Cards Round 2 Gets Another Boost with PenFed Announcement
PenFed Credit Union announced Tuesday it will begin issuing contactless Visa-branded credit and debit cards this month.
The move comes after a decision by Chase, a unit of JPMorgan Chase & Co., to issue dual-interface cards that will be in force this year. The cards are called dual interface because they can be dipped into or tapped against a point-of-sale terminal. In November, Chase began issuing contactless cards for its Chase Freedom Unlimited and Chase Slate cards, with plans to expand to other Chase Visa credit cards and eventually its debit cards later this year.
Visa Inc. predicted that 100 million contactless EMV cards bearing its mark will be in issue by the end of 2019.
“Once live, all credit and debit cards that PenFed offers will be issued as contactless cards at account opening; existing accounts will receive new cards, with contactless functionality, upon expiration or replacement,” a spokeswoman for Tysons, Va.-based PenFed says in an email to Digital Transactions News. “PenFed offers five core credit card products today as well as debit; if including legacy and partner products, we have nine account types in our portfolio.” It did not disclose how many cards it issues.
“The release of the contactless credit cards comes at a time when we’re focusing on digital innovations and helping our members make purchases in the most convenient ways,” said James Schenck, president and chief executive of PenFed Credit Union and chief executive of the PenFed Foundation, in a statement.
Visa, in September, said 50% of its face-to-face transactions happened at contactless-enabled merchant locations.