The Dutch electronic cash system Chipknip will be abolished as of January 1, 2015, after 17 years of operation.
Following a significant decrease in the number of Chipknip transactions over the last three years, Currence –the company responsible for electronic payment systems such as Chipknip, Acceptgiro and iDeal– has decided to phase out the once-popular system in lieu of more up-to-date methods of payment.
Businesses in the Netherlands have been strongly advised to modify their payment systems accordingly by October this year.
Ideal for paying small amounts in the absence of cash, the Chipknip became the preferred method of payment for parking, vending machines, and catering services. Smart cards embedded in Dutch bank passes may be loaded with a limited value via Chipknip loading stations, which can then be used in certain transactions. This system eliminates the inconvenience of not having the exact change when using a vending machine or a parking meter.
However, due to the growing number of payments made with the standard PIN system, it appears that the Chipknip is becoming increasingly unnecessary. Since 2010, the number of Chipknip transactions in the Netherlands has declined from 178.3 million to 121 million. This 32% decrease over the last three years has led to the termination of the Chipknip system. As a result, businesses, municipalities and universities such as TU Delft have been exploring alternative methods of payment.
“The Chipknip service will be terminated nationwide, so this will stop on campus as well,” says a spokesperson for the TU Delft Facilities Management and Real Estate Department. “That is why, based on research and user experiences, TU Delft is considering Near Field Communication (NFC) as a replacement for this method of payment in the future. NFC is a new international method of payment that is already used worldwide and is upcoming in the Netherlands. With NFC, you can pay wirelessly by swiping your bankcard or token (for example Smartphone with NFC chip) at the payment terminal. TU Delft will monitor user experiences elsewhere and consult its suppliers before deciding to introduce NFC on campus.”
Nevertheless, the implementation costs related to the new system have yet to be established. “At the moment we are assessing the consequences of the introduction of the aforementioned payment method,” the spokesperson claims. “The outcome of this process will determine possible costs. As soon as the replacement for the Chipknip is determined, all stakeholders will be properly informed.”
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