Security scares to drive PINs at point-of-sale
15 April 2004 | 4670 views | 0
Consumer awareness of identity theft and card security fears are set to drive the adoption of PINs at the point-of-sale, according to two separate research reports into payment trends in the UK and US markets.
In the UK, research from MasterCard - conducted by TNS among 1086 adults - forecasts a surge in plastic debit payments following the nationwide roll-out of chip and PIN at the check-out.
The switch from signature-based payments to PIN-based data entry will encourage one-in-three people to carry less cash than they do now, says MasterCard, as shoppers opt for the security and convenience of plastic payments.
Paul Lucraft, general manager business services Northern Europe, MasterCard says: "It seems that peoples’ wallets and purses will soon be a lot slimmer as shoppers who say they will pay by cash less frequently plan to carry around 42% less in notes and coins."
Of those surveyed, 41% stated that they would pay using their debit card more often following the roll out of chip and PIN. MasterCard’s findings also show that three million people who currently don’t have a credit card will apply for one once chip and PIN cards are in place. This is due to the extra level of security that will be offered by the new cards.
In the US market, a seperate study by Dove Consulting and the American Bankers Association suggests that PIN debit will overtake signature debit within the next five years as the cost of PIN pads fall and consumers switch to safer ways to pay.
Debit cards were used for 31% of payments in the US in 2003, while cash and cheques accounted for 47% of payments, compared to respective figures of 21% and 60% in 1999.