In this week’s blog, we discuss the Contactless Payments Survey Findings. Which despite security concerns is the preferred payment method in the UK. In a marketing survey on the saturation of contactless cards into the UK market and the behaviours of those who use them; Card Cutters have found that contactless cards are now the most preferred payment option.
Contactless Payments Survey Findings
More than 40% of UK consumers use their contactless cards at least a few times a week with 20% using them every day, showing the importance of every business offering card payment services to the customers. 21% of UK consumers still use their contactless card less than once a week or not at all.
Second to contactless cards were old fashioned cash transactions, proving that cash still serves a fundamental purpose in the UK market and completely cashless transactions are still some way off. The least preferred method was cheque which is unsurprising, however, digital wallets ranked second to last on the scale.
Perhaps surprisingly in the smartphone-centric world, more than 60% of people do not use a digital wallet at all; with Apple Pay being the most used of all the digital wallet options available.
Despite contactless card is the preferred method of payment, there was significant concern over the security of contactless transactions with a majority of people ranking contactless transactions between 4-6 out of 10, with 10 being most secure and 1 being least secure.
These concerns clearly aren’t dissuading the UK consumer though and it appears to be the ease and convenience of contactless transactions that is winning the battle against any security concerns. The top three reasons for using contactless cards in a transaction were the ease of them, their convenience and that they are quicker than Chip & PIN.
The most popular place to use a contactless card was in a supermarket, with more than half of people surveyed saying that was where they used their contactless card the most. A high street store was the second most popular, with fast food restaurants being third.
In a world that is becoming increasingly online, this highlights the need for high street and brick and mortar stores to offer several payment methods in order to compete; although almost 90% of UK consumers said that they wouldn’t be put off a transaction if the store didn’t offer a contactless payment option.
The transaction value limit may also be a factor in the increase in the use of contactless cards, especially for micro-transactions under £30. Card Cutters found that the majority of UK consumers are aware of the £30 limit, with 10% believing there wasn’t a limit and just 5% admitting they didn’t know what it was.
More than 50% of UK consumers don’t believe that the limit on the contactless transaction should be raised, which could be linked to security concerns over higher amounts being allowed to be paid with contactless. Only 20% believed the limit should be raised to 25% saying they didn’t mind either way.
The survey was conducted to 151 UK residents aged between 18-80, analysing their use of contactless debit and credit cards as part of their shopping habits.