Survey finds education is critical to adoption of contactless payments
Three quarters of British consumers feel that they need more education on contactless technology before they start paying with contactless debit and credit cards or mobile phones, according to a new research study.
The study commissioned by Ingenico, the worldwide payment solutions provider, found that contactless payment penetration remained low, that consumers felt ill-informed about the technology and had real concerns about security.
The research revealed that although nearly half of British consumers (46%) would consider using their mobile phone as a method of payment, many consumers were unprepared to make the leap from traditional forms of payment. Ingenico said this was most clearly shown by the slow take up to date of contactless debit and credit cards. Less than one in eight (13%) consumers had ever owned a contactless enabled debit or credit card and only one in 20 (5%) had ever made a payment using the technology.
More than six in 10 (61%) said they needed more reassurance that contactless card and mobile payment technology was secure before they would attempt to use it. Nearly half (47%) said that they didn’t know enough about the technology to make them want to use it.
More than four in 10 (42%) consumers still didn’t know where they could use a contactless card, and more than a third (35%) had no idea what a contactless terminal looked like.
Responsibility for helping consumers understand contactless technology should rest with the payment card industry according to three quarters of British consumers (75%). Two thirds (66%) thought that the banks should take responsibility for consumer understanding and just over half (55%) thought that retailers should do more to educate shoppers. A quarter (26%) felt that the Government should be responsible for consumer education.
Commenting on the research, Craig Doyle, managing director for UK and Northern Europe, Ingenico, said: “Consumers have long demanded improved convenience and speed during their shopping experience. But this research reveals that they are still not sufficiently confident in using contactless technology to make the switch from traditional cash and cards. There can be no doubt that we remain on the cusp of a major payment revolution. However, providing shoppers with clearer information about contactless technology will be critical to improving their knowledge and ultimately increasing consumer adoption.”
He added: “There is a huge responsibility on the shoulders of the ‘contactless industry’ to work together to ensure that demand from consumers meets supply of technology. And the best way to achieve this equilibrium is to raise levels of awareness and understanding about the benefits of this technology and continue bringing convenience to the end consumer.”
