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Do contactless payments scare your customers?

May 28, 2013 by Jim Ghiglieri — Senior Vice President, Corporate Communications, SHAZAM

Contactless payments using mobile phones are the future of the payments processing industry — they're quick, easy, and bring countless benefits to merchants. But according to recent research, many people are still unsure about the technology.

Survey data from the comparison website GoCompare recently found that only 6 percent of consumers have initiated a contactless payment so far, and just 3 percent have done so using mobile phones. About 25 percent said they still find the technology "scary."

The survey, which included 2,000 United Kingdom adults, also looked at how consumers expect to pay for things ten years from now — 60 percent of those surveyed said cash will remain their top choice in 2023. More than half (52 percent) said debit cards will still be their payment of choice.

Nearly two-fifths of people thought they would be using contactless card payment systems in 2023. By comparison, only 36 percent expected to still be using traditional credit cards by then. Just over a quarter of those surveyed expect to be paying for items via their mobile phone in 2023, while 19 percent think they will be using a type of biometric payment system. Very 007.

Some consumers remain unwilling to embrace what is clearly an emerging technology. Yet, there's no doubt contactless payments are the way of the future. According to Smart Card Alliance, there's already widespread support for the technology, as American Express, Discover, MasterCard, and Visa have all already begun contactless payment initiatives.

Payments using near-field communications for card reading and point-of-sale systems for swiping cards have recently gained traction. Although some consumers may be afraid of technological innovation now, most are predicted to eventually come around.

About Jim Ghiglieri

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