U.S.: Go-Tag Sticker Gets C-Store Debut
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U.S.-based processor First Data announced the first retail chain stocking its contactless sticker in June, the 350-convenience store chain Sheetz, based in Pennsylvania. The sticker packs a contactless chip and antenna similar to a U.S. contactless bank card. They carry a prepaid Visa payWave application that can be used in Sheetz and anywhere else payWave and other brands are accepted. Much larger C-store chain 7-Eleven began stocking the Go-Tag in the fall and so did New York-based retail pharmacy Duane Reade. All told, the three chains have more than 6,000 locations in the U.S., though actual stores selling Go-Tag as of the end of 2009 were much fewer. And the chains do not seem to be promoting the sticker much. First Data has also offered Go-Tag to merchants as a closed-loop gift card. The company introduced the sticker at the U.S. Democratic Party convention in Denver in mid-2008.
The idea behind Go-Tag and other contactless stickers sporting open-loop payment applications is for consumers to stick them to the back of their mobile phones and tap them as they would contactless bank cards. This would then increase awareness of contactless payment among consumers and serve as a bridge to NFC phones. Sales, however, have not been brisk so far for the Go-Tag. It is not being promoted strongly by the chains, and there have been a few performance issues, probably related to the shorter read range from the smaller antenna, said sources.
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