The Co-operative has said it will become the UK’s first major grocery retailer to introduce contactless payment in its stores nationwide after joining forces with Barclaycard

Contactless payment allows customers to make purchases of £15 or less, without the need to enter a PIN or insert their card into a payment terminal. Once the card has been held over the contactless terminal, the secure transaction uses Chip and PIN technology to automatically add the purchase to the customer’s credit card bill or debit it from their current account.

The roll-out will begin with a pilot in 100 Co-operative food stores next year after an agreement was signed with Barclaycard in partnership with Visa. If the pilot is successful, The Co-operative will roll out the terminals to the majority of its food stores in time for the 2012 Olympics, which is being billed as a contactless event, where visitors are expected to experience the full convenience of contactless payment on transport, tickets and other low value purchases.

Contactless payment, which is already commonplace and proving popular in the US and Asia, is ideal for transactions where speed is essential, especially at supermarkets and petrol stations. Roll-out of contactless payment in the UK began in 2007 and there are now over nine million contactless enabled cards in circulation.

Sean Toal, Commercial Director, Food Retail, The Co-operative Group said, “This is a great opportunity for The Co-operative to work in partnership with Barclaycard to become the first major food retailer in the UK to roll-out this unique payment method. It has received an excellent reception from both customers and retailers where it has been launched overseas and is ideal for our store portfolio.”

Mark Hale, Director of Food IS, The Co-operative Group added, “Contactless payment has huge benefits for our customers. In essence, this innovative technology will mean increased customer choice and faster transaction speed, which will vastly improve the customer experience.”