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Drug Store Chain Pleased With Contactless Cards

Contactless payment cards account for about 4% of card transactions at New York-based pharmacy chain Duane Reade, Chris Darrow, vice president and controller for the 250-store chain, tells Card Technology. “We think this is very good,” he says. About 60% of purchases made at the chain are done with credit and debit cards if one takes out drug purchases, which are typically made through health plans, he says. The chain began to accept contactless payment cards last year. While American Express-, MasterCard- and Visa-branded cards make up roughly equal shares of magnetic stripe credit card transactions, MasterCard International’s PayPass cards account for the vast majority-70%-of contactless transactions at Duane Reade, Darrow says. “MasterCard has gotten into the market much quicker than other (brands),” he says. The average contactless transaction stands at about $18. An average magnetic stripe credit card transaction is more than $30, he says. (2006-04-04)