Convenience to drive contactless uptake, but consumers still need convincing

Convenience to drive contactless uptake, but consumers still need convincing

Convenience, rather than security, will be the driving force behind the UK adopting new payment methods, according to a survey of 1000 British consumers conducted on behalf of Ingenico.

The research found that consumers had limited first-hand experience of the new wave of contactless payment technologies, and that fewer than half of those questioned would consider using the technology.

Of those in favour, the top three benefits were cited as convenience, a reduction in queuing times and a preference to carry less cash and cards around. Security was not considered a major selling point or turn-off - although this could be a reflection of the questioning rather than an accurate guage of consumer sentiment.

Although the current limit for contactless payments in the UK is set at £10, the survey found that shoppers are happy for this figure to rise to an average of £35.10. With mobile handset payments, the average was £32.10.

With the average person carrying £29.30 in cash, this opens the door for these payment methods to eventually replace 'pocket money', suggests Ingenico, particularly as the technology becomes more widespread.

Similar sentiments have been expressed by the Association of Convenience Stores (ACS) which believes that while contactless could cut the queues at busy commuter shops, such as newsagents, it fears that retailers will miss out on sales because of the £10 limit on contactless purchases.

Comments: (1)

A Finextra member
A Finextra member 13 February, 2009, 21:59Be the first to give this comment the thumbs up 0 likes

I would enjoy seeing the methodology (question design). Here's what we've learned: security is a paramount issue, and only after the customer feels that their security needs are satisfied do other needs (such as convenience, rewards, etc) rise to the surface. Sound familiar? This is classic Maslow's Heirarchy of Needs. I can design a survey to show security as #1 or one of many top features, depending on whether or not I isolate the variables when fielding the survey. The thing is, different formats would all produce worthwhile findings (this is not a matter of "juicing the data"). Therefore, marketers and product managers must be exacting in their application of research data related to security and other benefits or needs, and understand what respondents current attitudes are as well.