Here is an idea.
If x and y are different points in the unit disc then one can draw a line segment from x through y and extend it until it touches the boundary circle. This defines a map,f(x,y), from BxB\D onto the circle. Is this map continuous?
If so then, the continuous map (x,y) ->(0,f(x,y)) maps is the identity on the circle, (0,e^{i\theta}).
If BxB\D were contactible then the compositions
((0,e^{i\theta}),t) -> BxB\D X I -> BxB\D -> (0,f(x,y)) where the first arrow is inclusion, and the second a contraction homotopy, would show that the circle is contractible.
But the circle is not contractible because a contraction homotopy would make the circle into a retract of the unit disc.