Shoppers appear to be less than enthusiastic about the new contactless payment – if they are even aware of it.
Despite being the much-hyped next stage of consumer payment, and the widespread rollout of these cards in the UK, latest research from Mintel reveals that only 5% of people in Britain have used a contactless card.
In addition, 14% say they have been issued with a card but not yet used the contactless feature.
And even among those who have used the contactless feature, it seems approval is far from overwhelming. Just 43% of those using the feature had used it within the few days preceding Mintel’s research, and while 62% do agree that it is more convenient, the rest veer towards acceptance rather than enthusiasm.
Furthermore, Mintel’s research strongly suggests that there are still many people who have been issued with a contactless card but have not yet realised it. While 9m consumers know they have a contactless card, 3.8m are not sure.
Said Toby Clark, head of UK financial services at Mintel: “Consumers are still wary of contactless card payments, and compulsory upgrades risk further undermining consumers’ goodwill towards the banks.
“There’s anecdotal evidence of disgruntled customers closing accounts rather than have to carry a contactless card. If they only realise that they’ve been issued with this card months after the event, the reaction will be even less favourable.”
“People are worried about the security implications of contactless cards – in particular, how easy it would be for thieves to use stolen or lost cards.
“For those who have been issued with a card, though, it’s not security that’s preventing people from using contactless cards. Instead, it’s the limited acceptance and a lack of a compelling reason to switch from chip & pin.”