It seems I'm not alone in this. There is a real demand for tap-and-go money systems and Visa and Mastercard are neck-and-neck in the race to be the first to market in the UK. Using wave-and-pay couldn't be easier. You will be able to buy one ready-loaded and top-up at retailers or online. This technology will speed up paying at tills and no chip-and-pin number is required.

John Bushby of Mastercard UK says: 'Our experience has shown us that consumers love the convenience, simplicity and security of tap-and-go when paying for everyday things such as newspapers, sandwiches and drinks.'

The technology will be launched in London in September and is expected to be installed in 100,000 shops in the UK by the end of 2008. Around five million contactless cards are expected to be issued in the UK by the end of 2008. Around 20 billion payments worth less than £10 are made in the UK every year. The Bank of Scotland, Barclaycard, Citi, Euroconex Technologies, Halifax, HSBC, Lloyds TSB and the Royal Bank of Scotland will participate in the first phase of the roll-out.

Jose San Juan, Visa UK's managing director, said: 'I am pleased that the industry has united on standards for cards and terminals that will provide a highly convenient and quick way to pay for low value items.'

There is a third player coming to market too. sQuidcard is a subsidiary of Nucleus, a leading brand, internet and venturing business, which has developed this concept using its experience of operating the Oyster internet infrastructure for Transport for London. They have a different approach to the big boys and are set to launch in the north west this Autumn, with further trial sites within the M25.

Quidcard CEO Adam Smith said: 'Tap-and-go eMoney cards are expected to start to replace cash for small purchases under £10, but solutions from debit and credit card networks are likely to load small transactions with significant fees; which the consumer will probably have to pay for.'

He believes that if the credit card companies and banks apply their standard high transaction fees to the UK's sub-£10 cash market, this is likely to drive up prices for the consumer and, thereby, fuel inflation.

An average debit card transaction fee is about 18p, so buying a £1 newspaper will incur a debit card fee of 18p. Layers of fees and commissions built-in to the credit card system, plus potentially onerous interest on any outstanding balances, could push the costs even higher.

But by using an alternative network, designed specifically for low-cost payments and based on secure internet technologies similar to London's Oyster, sQuidcard are able to offer the same benefits at a lower cost.

They promise not to charge more that 1.5 per cent, meaning our hypothetical £1 transaction will cost only 1.5p. In many instances, this may cost the retailer less than handling cash.

But can a little company like sQuidcard take on the might of global leaders Visa and Mastercard and win? Only time will tell.

In the meantime, I just can't wait until this technology comes to the Isle of Man. I'll be first in line to sign up!


>>Sherrilynne Starkie is the managing partner at Douglas-based Strive Public Relations, a virtual communications consultancy serving the Island's tech sector. She provides her views on business and technology, and the business of technology, each week in Tech Talk. Visit her business blog, Strive Notes for frequent updates. www.strivepr.com