Contactless Credit Card Technology Not Understood By Consumers

LONDON–(EMWNews)–Contactless credit cards allow cardholders to wave-and-pay at checkout

terminals fitted with contactless technology sensors. This new

technology, which has cost the industry millions in development and

marketing, is not yet the smash-hit that industry leaders had expected.

In a recently published issue of Cardbeat ^®,

a syndicated market research report conducted by Auriemma Consulting

Group (ACG), consumers have indicated that contactless technology is not

an easy sell. In light of the credit crunch, and increasing insecurity

about the risk of identity theft, consumers need additional

encouragement to acquire a new card – even if

it features a compelling new technology.

Highlights from the study include:

• Only 3% of the population is familiar with contactless technology.

  Clearly, the card industry’s next task is to

  educate the consumer to increase understanding of this payment method.

• Consumers want contactless cards after learning more about them. After

  reading an explanatory paragraph about contactless payments

  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

  would use a contactless card more than a standard credit card because

  of its “cool new technology.”

  67% of consumers would use a contactless card more than a standard

  card due to its “ease of use.”

• 23% of consumers would not use contactless cards because of concerns

  of identity theft; a robust education-focused campaign should address

  this concern.

Matt Simester, Director at Auriemma Consulting Group comments, ‘evidence

is quite clear that the consumer is not familiar enough with contactless

cards in order to make a decision to own one of these cards. Education

is the single most important change that lenders can do to drive

consumers towards contactless card acquisition.’

About Auriemma Consulting Group

Since 1984, ACG has offered comprehensive, high-quality management

consulting to the credit and debit card industry. The information in

this release was originally published in Cardbeat®,

a syndicated market research report that provides insight into the

impact of consumer perceptions on credit card usage. The data was

generated from a survey of 508 credit card users in the first quarter

2008.

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