Visa UK is set to launch a new "wave and pay" card system that could make chip and PIN redundant for small purchases.

The new scheme, which will be rolled out initially in London, uses a contact-less process through which customers can buy items worth up to £10 by waving their card over a card reader. The first wave of systems will be installed in fast-food outlets, coffee shops, bars and pubs next year.

Connie Penn, chairman of the HCIMA Hospitality Users Discussion Forum for Chip & PIN, welcomed the new payment scheme. "This will play a major role in encouraging the use of cards over cash for low-value transactions," she said.

By Kerstin Kühn