American Express is abandoning its "Express Pay" fob--a payment device that attaches to a key chain--six years after it began testing it. It plans to focus on its traditional cards instead--installing
computer chips in them that allow customers to hold the card up to an electronic reader instead of swiping it through a device.
"We have actually found that our customers prefer to use the
contactless technology through our traditional cards" rather than the key fob, says Richard Flynn, a svp who oversees "cardless" payments at AmEx.
Card issuers have been encouraging merchants
to install the new readers, which are supposed to speed customers through checkout lines. Fast-food restaurants and drugstore chains have been among the most enthusiastic merchants to try the new
technology. A report issued by Aite Group estimates that some 40,000 merchant locations are already equipped with contactless readers.
Read the whole story at The Wall Street Journal »