By Mary Catherine O'Connor

Aug. 1, 2005—Back in February 1950, a lawyer named Frank McNamara ate dinner at Major's Cabin Grill restaurant in New York. When the bill was presented, he pulled out his wallet and handed the waiter a small, cardboard card-a Diners Club card-and signed for the purchase, ushering in the age of charge and credit cards. Ever since that meal-known in the credit card industry as the First Supper-pundits, analysts and futurists have been predicting the death of cash and the rise of the cashless society.

Fifty-five years later, some businesses and governments in the United States, Asia and Europe have introduced cashless payment systems that use radio frequency identification devices to identify purchasers. Many of these systems are being used to speed consumers through tollbooths, transit turnstiles and gas stations.



Now retailers, restaurants and other establishments have begun to recognize the benefits of RFID payment systems: Businesses can increase sales by serving more people more quickly during peak periods, and customers tend to buy more when they don't need to worry about having cash. There are benefits for customers, too: no more waiting on long lines, fumbling with coins or worrying about having enough cash. All it takes to make a purchase is a wave of an RFID card or keychain fob by an interrogator, or reader.