The Royal Bank of Scotland (RBS) is beginning the rollout of contactless payment technology just weeks after rival Barclaycard launched its own scheme.

Fast food chain McDonald’s hosted the first public payment using the technology - which allows consumers to buy goods for less than £10 by simply tapping the card against a reader - at its outlet in London's Billingsgate.

Off licence Oddbins and a number of cafes, delicatessens and pharmacies have also signed up to take part in the rollout from next month.

Widescale contactless payment technology is being launched in London and Canary Wharf from September, with each of the banks launching their own schemes.

Barclaycard was the first to announce the retailers signed up to its OnePulse scheme, which includes Coffee Republic, Krispy Kreme, Books Etc and Threshers.

McDonald’s will make contactless payments available in 12 London outlets, said chief information officer Ivan Brooks. The technology halves the time it takes customers to pay for an order, compared with a cash transaction.

‘This is another step for us in modernising and evolving the business,’ said Brooks.

‘We are constantly looking at ways to improve the overall customer experience.

'The speed and simplicity of paying for McDonald’s food in this way is one element of this,' he said.

Contactless payment will be available in the 12 designated London McDonald's sites by October, with a view to future roll out across the country.

RBS has trialed contactless payments since June, 2006 at its Edinburgh and London offices, with more than 52,000 purchases made by staff at its internal shops.

‘People love the convenience and speed of the card as well as the freedom from worrying about whether they have enough change,’ said RBS cards and direct finance managing director Ian Clink.

‘Retailers like contactless cards too because they make paying faster which means faster moving queues and happier customers.’