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Contactless cards not likely to make much difference in mobile payment adoption

May 17, 2019

A widening rollout of contactless cards has been accompanied by speculation that increased comfort with the technology will spur mobile payments, but it might actually cause some consumers to revert from digital to physical payments, to Auriemma Research.

"Consumers have been repeatedly asked to change their payment behavior," says Jaclyn Holmes, Director of Auriemma Research. "While adjusting to various card payments is easy, the larger switch in the physical mechanism of phone payments takes more time."

According to Auriemma's Mobile Pay Tracker, far more mobile payment users than mobile payment non-users expressed interest in using contactless cards — at 60% and approximately 25%, respectively. 

Overall, consumers are uncertain whether contactless card payments are better or worse than mobile payments: 65% say they are about the same; 18% say they are better; 17% say they are worse. 

Those who said contactless card payments are better typically said they are faster, easier, and more secure than mobile payments — three things mobile payment users often say when asked why it is better to pay with mobile then with plastic. 

Those who believe contactless card payments are worse often expressed concerns about security (e.g., more susceptible to fraud, wouldn't be any safer) and say they still need to take out their payment card. 

"Consumers will have more options at checkout than ever before, but will they choose contactless cards or a mobile wallet?" Holmes said. "Although upgraded terminals benefit both methods, the point-of-sale experience continues to be fragmented for mobile payment users who must pull out their physical card when things go awry." 

The Auriemma Research study was conducted online with 1,518 U.S.-based mobile payment-eligible consumers. All respondents also had a general purpose credit card in their own name.