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BizReport : Trends & Ideas : April 11, 2016


31% of UK consumers do not trust contactless payment technology

Consumers in the UK, particularly those among older age groups, are not using contactless payment technology because they do not trust it, according to a new survey from business intelligence consultants Future Thinking.

by Helen Leggatt

In a survey of more than 2,300 consumers in the UK, Future Thinking found that, despite more than 1 billion transactions being completed with contactless payment technology last year, almost a third (31%) of consumers have not used it due to a lack of trust.

The limit for contactless payments rose in the UK last year from £20 to £30, and more than a quarter (27%) of respondents felt that this should be the maximum, although 9% of those who used contactless payments hoped that limit would continue to increase.

"It is clear from recent figures that there has been a huge increase in the number of purchases using contactless technology," said Noreen Kinsey, senior research director at Future Thinking. "This reflects consumer desires for quicker payment methods and increased convenience.

However, a person's age and gender significantly changes the way they view contactless payment technology. As might be expected, younger age groups (under 35's) were more likely to trust the technology - just 22% did not trust it compared to 43% of over 55's. Meanwhile, men were less likely to trust contactless payments than women - 35% and 29% respectively.

Fourteen percent of respondents did not know if their cards were contactless.

"As with all new technologies, there is still some reluctance towards this technology, particularly among older age groups, who may be further isolated as we move towards mobile pay and other tech-enables purchase solutions," said Kinsey.

Earlier this year, Visa UK and Ireland managing director Kevin Jenkins declared that, in the UK, contactless payments have become the "new normal" with more than half a million terminals across the country supporting contactless and mobile payments. Visa published data showing that 1 in 7 face-to-face Visa transactions now take place using contactless payment methods, a rise of 250% YoY.



Tags: contactless payments, payment method trends, payment technology, UK








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