Businesses that do not offer contactless payments risk losing out as usage increases
22 July 2015
- Just under half of consumers expect, or would like the option, to pay with contactless for low-value items when buying
- Consumers are frustrated that not enough retailers offer contactless payment terminals
- Speed and ease are identified as the biggest advantages to using contactless
- Consumers are receptive to new payment processes, including being issued with electronic receipts
As usage of contactless cards has trebled,* just under half of consumers (47 per cent) expect, or would prefer, businesses to offer contactless payment for low-value transactions of less than £20, according to new research** from Lloyds Bank Cardnet.
Despite its relative recent introdcution, over a tenth (12 per cent) of consumers state that they do not think enough retailers offer contactless and just under a tenth (9 per cent) suggest that the current £20 spending limit is too low. However, all is not lost for those businesses that do not hold payment terminals, as four out of ten consumers (40 per cent), say that they would still continue to shop in businesses that do not offer contactless card payment facilities.
LIKES AND DISLIKES ABOUT CONTACTLESS
Of those that own a contactless card, when asked what they liked most about contactless payments, a quarter (25 per cent) of respondents stated speed of transaction and a near identical number (24 per cent) said ease of transaction. The least favoured element of contactless payments is security, with over a third (37 per cent) stating this as their main dislike.
DEBATE ON CONTACTLESS LIMIT
Of those that do want to use contactless, over half (57 per cent) said that they do not want the threshold to go above £30, over a third (38 per cent) would be keen on the contactless threshold increasing up to £50 but less than a tenth (six per cent) would want to increase it over £50.
Aidene Walsh, Director of Commercial Cards & Acquiring Solutions, Lloyds Banking Group said: “Industry and our own data shows use of contactless is on the up and consumers are demonstrating a preference to use it to pay for low-value items. Whilst certain consumers have currently said that they do not mind shopping with businesses that do not offer this facility, we would anticipate that, as more and more people become comfortable with paying through contactless, and appreciate the ease of it, expectations around retailers offering it will increase. Therefore, we would encourage businesses to consider whether they have the right payment terminals to meet changing consumer preferences.”
DESIRE FOR ELECTRONIC RECEIPTS
Speed and ease are clearly front of mind when looking at making contactless payments. Of those who hold a contactless card, two thirds (68 per cent) would still prefer a receipt for contactless payments, however, a small minority (15 per cent) would be keen on receiving electronic receipts.
Walsh continued: “As consumers continue to be open to new developments, moving towards using less cash and going paperless for their financial information, businesses need to ensure that they have the right payments infrastructure and tools in place to meet changing consumer preferences.”