The plastic Olympics: visitors to 2012 told 'no cash is needed'

Credit card firm Visa today pledged that the 2012 Olympics will be entirely cashless for visitors.

It plans to roll out hundreds of thousands of "contactless" cards that only need to be swiped over a reader, as you would an Oyster card, to make a payment. The cards will also work on public transport and may even include electronic tickets for events.

Visa is already using the technology and has distributed more than 100,000 "wave and pay" cards to its customers in London. More than 5,000 retailers, including McDonald's, Krispy Kreme and Eat have signed up to the scheme.

From today, the cards can also be used to pay for an Evening Standard simply by tapping them over electronic readers at vendors' kiosks. This uses GPRS-based technology developed in conjunction with Lloyds TSB Cardnet. Guido Mangiagalli of Visa said: "By the end of the year we hope to have over 13,000 retailers signed up but we see the 2012 Games as being our chance to really showcase this technology. Every Olympic venue will have contactless readers in retailers and we aim to make the Games entirely cash-free for visitors."

Visa plans to include the wireless payment capabilities in all of its credit cards within five years. For visitors to the Olympics who do not own a credit card, prepay cards will be sold. Payments with the cards will be limited to £10 and Visa hopes they will be used for smaller purchases.

The company hopes the addition of the Evening Standard to the scheme will help dramatically increase its usage.

Mr Mangiagalli said: "We knew there would need to be a significant cultural shift for consumers and retailers to fully embrace the concept of using cards to make low-value payments - traditionally the preserve of cash.

"While we accept that more education is needed for widespread adoption, the signs so far are very encouraging, with consumers and retailers across the capital discovering the numerous advantages of contactless payments.

"In retail environments, such as coffee shops, express grocery stores and newsagents, where purchases are lowvalue and speed of service is essential, Visa payWave offers a secure, convenient and quick alternative to cash and it is revolutionising how consumers pay for items in London and across Europe."

Mobile phone firm O2 has also been testing the technology with a mobile that acts as a credit card and Oyster card. Users simply swipe the back of the phone over a reader to make payments.

O2 said it would make a decision on plans for the phones later this year.