Swipe cards set for the Co-op

THE Co-operative is to become the first major food retailer to use contactless payment.

Customers will be able to pay for purchases of 15 or less without using a Pin in the majority of the chain's stores by the 2012 Olympics, if a trial is successful.

Customers will swipe a card over a terminal similar to London's Oyster system. The secure transaction automatically adds the purchase to the customer's credit card bill or debits it from their current account.

The pilot will begin in 100 stores next year, following an agreement with Barclaycard.

Contactless payment was introduced in the UK in 2007.

Co-operative Group spokesman Mark Hale said: "Contactless payment will mean increased customer choice and faster transaction speed."