Visa announced that supermarket giant Woolworths has agreed to use its new contactless payWave payment system. Visa's new system allows customers to make purchases of under $100 without signing or using a PIN. This new system has raised valid security concerns with industry insiders.

Criminals are a resourceful lot and it won't take long to find the weak point and to exploit it. It will be a challenge to keep the credit cards secure. This new measure could pose serious risks of fraudulent transactions. New technology could also exploit the system.

Visa has been trailing contactless mobile payment applications. The most important aspect of getting other businesses to adopt this payment method is by consumers believing in the security of Visa's process.

Visa's payWave has touted its security. Cards can only be read up to 4 inches from the secure reader. Every transaction has a unique security code. The card doesn't have to leave the user's hand. The payWave payments are processed through the same network as swipe transactions. If the card is stolen the customer is protected with Zero Liability for any unauthorized purchases.

Consumers are finding the speed and convenience of paying with the contactless card more preferable than using swipe cards or cash. Customers don't have to look for cash or worry they're carrying enough. They also don't have to wait for swipe cards to be processed and asking for a signature.

Time will tell if contactless cards will gain enough traction with consumers. Woolworth adopting the system is certainly a step in a more contactless existence. However the main thing is the perception of the public. Consumer confidence in the system will be more persuasive than any company assurance. If everyone in your family or circle of friends trusts the system, you wouldn't be far behind in using it.