‘Providing shoppers with clearer information about contactless technology will be critical to improving knowledge and consumer adoption,’ says research from Ingenico.
Three quarters of British consumers feel they need more education on contactless technology before they start paying with contactless debit and credit cards or mobile phones, according to new research commissioned by POS manufacturer Ingenico.
Despite a desire for faster, more convenient payments in stores, they are reluctant to switch from traditional cash and card transactions. A lack of trust and knowledge of the technology are major factors.
Craig Doyle, Ingenico’s managing director for the UK and northern Europe, says: “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.
Among the key findings of the survey, which polled 1,152 people, are:
- 73% feel they need more education on contactless technology before they start paying with contactless debit and credit cards or mobile phones.
- 61% need more reassurance that contactless card and mobile payment technology is secure before they attempt to make any such payments.
- 47% say that they don’t know enough about contactless or mobile payment technology to make them want to use it.
- 42% consumers still don’t know where they can use a contactless card.
- 35% have no idea what a contactless terminal looks like.
- 47% would be put off from making contactless debit or credit card payments due to the risk of fraud, and the same number would be concerned about the risk of identity theft.
- Mobile phone payment technology faces the same issues, with 56% worried about fraud and 52% worried about identity theft.
- Responsibility for helping consumers understand contactless technology rests with the payment card industry, according to 75% of consumers.
- 66% think that the banks should take responsibility for consumer understanding and 55% think that retailers should do more to educate shoppers. 26% feel the government should be responsible for consumer education.
“There can be no doubt that we remain on the cusp of a major payment revolution,” says Doyle. “However, providing shoppers with clearer information about contactless technology will be critical to improving their knowledge and ultimately increasing consumer adoption.
“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,” he concludes.
The news comes just days after another survey found one in five consumers in the UK is “eagerly awaiting” the introduction of NFC technology.