Contactless cards not yet mainstream
(23 September 2008 – USA) US research has shown that while contactless payment cards are well received by those that use them, the majority of Americans are not aware that the technology actually exists.
The US research commissioned by the Smart Card Alliance has shown that a strong 92 percent of Americans that have a contactless card like to use them.
However, while they are well liked by those that use the technology, 75 percent of 1500 online respondents were simply not aware that the technology exists. Awareness has at least grown, from only 15 percent awareness in 2006.
The research by Javelin Strategy and Research also looked at the responses of 500 contactless card users specifically and found that 92 percent think the technology is fast and easy to use.
The card users also use their cards regularly with over 22 percent making payments with their contactless cards more than six times per month.
The technology is rapidly gaining in popularity, with nine percent of the US population now possessing a contactless card. Last year the number of open network contactless cards in circulation reached 35 million, nearly double the 19 million in 2006.
Merchants are also adopting the technology, with an estimated 75,000, including taxi firms and transport operators as well as retailers, now accepting the cards.
John Suchanec, senior vice president of payment research and innovations for the Bank of America said that contactless payment acceptance at merchants is taking off much faster than PIN debit did.
He said that contactless acceptance is already growing at a rate that it took seven years to achieve with PIN debit and that mobile phones will accelerate the curve.
However, while they are well liked by those that use the technology, 75 percent of 1500 online respondents were simply not aware that the technology exists. Awareness has at least grown, from only 15 percent awareness in 2006.
The research by Javelin Strategy and Research also looked at the responses of 500 contactless card users specifically and found that 92 percent think the technology is fast and easy to use.
The card users also use their cards regularly with over 22 percent making payments with their contactless cards more than six times per month.
The technology is rapidly gaining in popularity, with nine percent of the US population now possessing a contactless card. Last year the number of open network contactless cards in circulation reached 35 million, nearly double the 19 million in 2006.
Merchants are also adopting the technology, with an estimated 75,000, including taxi firms and transport operators as well as retailers, now accepting the cards.
John Suchanec, senior vice president of payment research and innovations for the Bank of America said that contactless payment acceptance at merchants is taking off much faster than PIN debit did.
He said that contactless acceptance is already growing at a rate that it took seven years to achieve with PIN debit and that mobile phones will accelerate the curve.
Subscribe