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First cash-free Waitrose: Supermarket set to open store where customers will only be able to pay via card or mobile apps

Stores are pushing to kill off cash despite evidence customers are suspicious of paying by tap and go cards or smartphone apps.

Waitrose has opened its first cashless store and Tesco has developed an app to allow shoppers to buy up to £400 of groceries with their phone at the till.

The move is part of a wider drive by banks, retailers, and public transport services to kill off cash.

At the same time tech giants, notably Apple, Samsung and Google, have also developed mobile phone apps to allow people to pay with their phone.

Barclays has also developed apps and wristbands that can be tapped on till readers to make purchases or pay for a bus ride.

The first Waitrose cashless store is on the campus of Sky Central, the new office building at the heart of the broadcasting giant’s empire in west London.

It will cater to over 3,500 staff on completion this summer and could be a template for other stores where there are no conventional tills.

Instead, shoppers will be able to make purchases with card or mobile devices at one of the five self-service checkouts.

Many supermarkets have already reduced the number of conventional checkouts manned by real people in favour of self-service tills.

The Waitrose move at the store, which will sell sandwiches, wraps and sushi, evening meals, celebration cakes, fresh flowers, fresh bread and croissants as well as cupboard staples, is the next logical step.

There is a daily cap of £30 on spending with contactless plastic cards and mobile phone apps like Apple Pay and Android Pay in order to limit the dangers of fraud.

However Tesco’s new PayQwiq mobile payment app busts this limit and allows purchases of up to £400 in a single visit.

 There is a daily cap of £30 on spending with contactless plastic cards and mobile phone apps like Apple Pay and Android Pay in order to limit the dangers of fraud

There is a daily cap of £30 on spending with contactless plastic cards and mobile phone apps like Apple Pay and Android Pay in order to limit the dangers of fraud

Customers can store their debit card and Tesco Clubcard details on their phones.

After completing their shop, PayQwiq users can present their mobile phone at the checkout, where the cashier will scan a code to instantly take payment and add loyalty points to the Clubcard account through what is known as a digital wallet.

The PayQwiq app, which was developed by Tesco Bank, has already been tested with ‘a small number of people’ across around 50 stores in Edinburgh.

Following that initial pilot, which sources said lasted a couple of months, Tesco is now extending the scheme to around 500 stores within the M25.

The grocer is emailing 600,000 customers during the coming weeks, inviting them to download and use the app as part of the next phase of the roll-out.

A Tesco spokesman said: ‘We are always looking to make the shopping trip better for customers and that’s why we’ve developed PayQwiq.

‘With PayQwiq customers can pay for their shopping and collect their Clubcard points all with one simple scan of their phone.

 The PayQwiq app, which was developed by Tesco Bank, has been tested with a small number of people across 50 stores but will soon be extended to 500 stores within the M25 (file photo)

The PayQwiq app, which was developed by Tesco Bank, has been tested with a small number of people across 50 stores but will soon be extended to 500 stores within the M25 (file photo)

‘Feedback from customers who have used PayQwiq has been very positive and we are now extending the service to more customers and more stores.’

Moving away from cash offers savings for businesses because they have no need to handle, count and transport large amounts of notes and coins.

It also means that stores can re-direct staff who may have working on checkouts to other staff.

Transport for London has made staff savings because it no longer accepts cash on buses, while Tube and over ground services are paid for with Oyster cards and mobile phone apps.

The technology is also a money-spinner for banks which take a fee for processing payments.

Sainsbury’s is trialling its SmartShop app, which will allow users to make shopping lists at home using their smartphones, create a personalised store navigation guide for the precise products being bought, scan products using their phone and then pay using their mobiles at dedicated check-outs.

Transport for London has made staff savings because it no longer accepts cash on buses, while Tube and over ground services are paid for with Oyster cards and mobile phone apps (file photo)

Transport for London has made staff savings because it no longer accepts cash on buses, while Tube and over ground services are paid for with Oyster cards and mobile phone apps (file photo)

Asda’s owner Walmart has also launched its own alternative in the US in a bid to expand customer payment options and increase the speed of checkouts in its stores.

While big business are pushing ahead with smartphone apps, turning mobile phones into digital wallets, the response from consumers appears lukewarm, at best.

Recent reports suggest only a tiny fraction of iPhone owners are using the Apple Pay service for purchases.

Research published by retail analysts Mintel found that just 7per cent of smartphone owners use the service.

Three quarters of smartphone owners say they have concerns about fraudulent transactions if their phone was lost or stolen.

And almost three in five say they do not trust digital wallet providers to store their financial data securely.

 


Waitrose to open store where customers can only pay via card or mobile apps  | Daily Mail Online. 2016. Waitrose to open store where customers can only pay via card or mobile apps  | Daily Mail Online. [ONLINE] Available at: http://www.dailymail.co.uk/news/article-3533020/First-cash-free-Waitrose-Supermarket-set-open-store-customers-able-pay-card-mobile-apps.html. [Accessed 11 April 2016].

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