Security remains a concern
Despite 80% of people in the UK knowing about contactless payment and a quarter owning compatible cards, usage remains low. This is according to new figues released from ICM Research as reported on StrategyEye.
The research found that just a third of those that have a contactless payment card have used it to buy a product, equal to just 8% of all consumers, and of those that have, only 12% buy something using this method on at least a weekly basis. ICM claims suggest retailers are not promoting the fact that they accept contactless payments, which enable users to make purchases by waving their credit card at a point-of-sale device using, usually, NFC technology. Security also remains a concern, with consumers worried that if their card were lost or stolen it would be easy for someone else to make purchases.
“There is a huge opportunity for retailers to drive revenues by developing and implementing a successful contactless payments strategy,” says ICM associate director Jamie Belnikoff. “However, as is often the case with new technology, it takes time to catch on, and there’s work to be done to communicate the advantages of contactless payment. The main challenge sits with retailers who have the opportunity to take advantage of high consumer awareness and appetite, much of which has been built by financial services providers.”
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