January 6, 2012 – 87% of contactless cardholders in the UK, Poland and Turkey believe contactless cards will be „instrumental in bringing mobile contactless payments to market in the near future,” according to Visa Europe. 77% also agreed or strongly agreed that contactless technology would ultimately become more commonplace than cash as a payment method. Visa Europe recently launched its second quarterly Contactless Barometer study. The Barometer canvassed perceptions of contactless technologies across the UK, Poland and Turkey, based on surveys of 1,700 banked individuals and in-depth panel sessions with around 500 contactless card owners per market.
The study shows that contactless owners value the convenience and ease of contactless payments, but suggests that the current relatively low acceptance levels in some markets is still preventing usage from becoming an every day habit.
Consumers envision a contactless future across cards and mobile
Seventy seven per cent of contactless owners across all three markets agreed or strongly agreed that contactless technology would ultimately become more commonplace than cash as a payment method (UK: 73%, Poland: 79%, Turkey: 79%). Eighty seven per cent also agreed that contactless will be instrumental in bringing mobile contactless payments to market in the near future (UK: 84%, Poland: 89%, Turkey: 89%).
Mark Austin, Head of Contactless for Visa Europe said: „People with experience of contactless cards are starting to see it as the first step to the arrival of mobile payments. The tipping point to more mainstream acceptance will be availability: the more chance consumers have to use their contactless cards, the more enthusiastic their response becomes. For us, London 2012 will be a major tipping point in the UK, with thousands of new contactless terminals installed across the Olympic venues to make payments as easy and convenient as they can possibly be.”
Major retailer rollouts drive significant usage increase
The proportion of contactless owners who cite the availability of contactless Point of Sale (PoS) terminals as a preventative to usage has increased (34% of UK contactless users vs. 23% the previous quarter). Where acceptance has increased, usage has grown significantly. For example, as a result of McDonald’s nationwide rollout of contactless terminals in the UK, 32% of UK card owners have now used their contactless card to pay for fast food, compared to just 12% in the previous quarter.
Banks and retailers hold the key to further increasing contactless awareness
The research also provides insight into the role that banks and retailers can play in further stimulating consumer adoption of contactless payments.
Communication received from the bank either before or after receipt of a contactless card plays a vital role in driving understanding and awareness of the new service among contactless cardholders (UK: 46%, Poland: 55%, Turkey: 38%), while external communications like TV and poster advertising is also cited by respondents as important (UK: 14%, Poland: 12%, Turkey: 15%). Collateral at the Point of Sale also plays its part in reminding consumers where they can use contactless payments (UK: 13%, Poland: 8%, Turkey 17%).
The research also suggested that incentives to use the technology would also be of interest once contactless infrastructure reaches critical mass (UK: 39%, Poland: 48%, Turkey: 34%).
Austin added: „With the number of contactless cards in circulation in the UK forecast to top thirty million by the end of next year and London 2012 set to showcase how the technology offers added convenience, the next twelve months provide an opportunity for the industry to capitalise on contactless payments and further connect with consumers.”
About the Contactless Barometer
Visa Europe’s Contactless Barometer is a benchmark study looking at consumer attitudes to new payment methods, developed from external consumer research.
The Contactless Barometer consists of two surveys:
1. An offline omnibus survey amongst roughly 1,700 banked consumers per market. The omnibus survey measures awareness and usage of contactless cards amongst a nationally representative sample of the overall banked population
2. An in-depth Contactless owner survey carried out amongst an online panel of roughly 500 contactless card owners per market. The Contactless survey delivers an in-depth understanding of behaviour, attitudes and usage amongst owners of contactless cards (users and non-users)
Two waves of the Contactless barometer have been conducted thus far:
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below: