Barclaycard is set to launch the UK's first contactless credit card in September, following the successful completion of technical trials.
The new cards will combine contactless Visa ‘wave and pay’ technology for small transactions worth under £10, standard chip and PIN payment and credit card functions for larger transactions and the Oyster fares smartcard used by bus and underground passengers in London.
The Oyster tie-up follows a deal signed in December between Barclaycard and TranSys, the consortium that runs the Oyster card system in partnership with Transport for London (TfL).
The contactless payment technology will allow cardholders to pay for low value items by waving the card over a reader in participating shops and outlets.
Hundreds of the cards have been tested over the last four months at terminals installed in shops, restaurants and on the TfL network, Barclaycard said.
The contactless payment facility is aimed at people buying small items where fast transactions are important, such as in fast food outlets, newsagents, pubs and car parks.
Libby Chambers, chief marketing officer at Barclaycard, said the card offered "all the security and flexibility of a full service credit card".
Barclaycard is now working with retailers to install contactless terminals.