ICM Research: Contactless is a growing market, but not quite mainstream yet
05 April, 2013
category: Contactless, Financial
With 27 million contactless cards in the UK, usage has increased by 4% points to 12% in the past four months, according to a study by ICM Research.
The study, which was first conducted in November 2012 and repeated last month, finds that of those who have made contactless payments, 9% say they make them every day, compared with 5% last November, while 28% make them most days, up from 12% in November.
While this increased uptake is exciting, ICM states it has not yet reached its tipping point. Security concerns still stand as a major obstacle stopping consumer from using contactless payments. Another major concern about contactless apart from security is availability.
In a mystery shopping exercise carried out in March, only 8 out of 20 high street shops visited had contactless facilities. Some retailers, such as Starbucks, are still not using contactless payments.
People using the cards in London has doubled to 25%, and this number is expected to increase due to the fact that there are now contactless payments on London buses and a huge advertising campaign initiated by Barclaycard.
As more come on board with contactless payments, from supermarkets and coffee shops to transport providers, both the payment industry and retailers need to continue to reassure consumers on the security aspect and give people an incentive to use it.
Contactless is a growing market and a joined-up approach is key to the success of the technology.
Read the full story here.
