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While the benefits of contactless payment cards are clear to those who understand the technology, the latest issue of the 'Cardbeat' market research report from Auriemma Consulting Group found that consumers are not yet convinced.
In the light of the ongoing "credit crunch", as well as increasing insecurity about the risk of identity theft, consumers reported that they need additional encouragement to acquire a new credit card, even if the card features a compelling new technology such as contactless payment.
Key findings
The study found, among other consumer concerns, that:
- Only 3% of consumers surveyed were already familiar with contactless technology. As a result, the card industry's next task must be to educate the public to help increase their understanding of this payment method.
- Consumers do tend to want contactless cards after learning more about them. After reading an explanatory paragraph about contactless payment technology, consumers were 7 times more likely to want a contactless card than before they read the description.
- After reading the description of the technology, 63% of consumers said they would use a contactless card more than a standard credit card because of its "cool new technology", and 67% said they would use a contactless card more than a standard card due to its "ease of use".
- But despite this apparent post-education enthusiasm, 23% of consumers still said that they would not use contactless cards because of concerns about identity theft, suggesting that a robust education-focused campaign should be undertaken if contactless payments are to continue expanding worldwide.
According to Matt Simester, director for Auriemma Consulting Group, "The evidence is quite clear that the consumer is not familiar enough with contactless cards in order to make the decision to own one of these cards. Education is the single most important change that lenders can make to help drive consumers toward contactless card adoption."
Source: Auriemma Consulting Group
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