Wednesday, February 20, 2019

Contactless payment deters 95% of consumers


Currently only five per cent of shoppers are utilising the contactless payment method due to concerns of their security being breached according to a survey released today.

A survey of 100 participants conducted on behalf of IT services provider for retail and hospitality, Vista Retail revealed that 30 per cent of retailers feel consumers are wary of non–traditional payment forms due to the security risks.

Other reasoning by 37 per cent of retailers for shoppers remaining at the tills is a lack of understanding of the concept.

Matt Piner, lead consultant at retail analyst group Conlumino concurred that the two factors of security invasion and not being fully informed of how to conduct transaction has met with reluctance by the consumer. Piner told Retail Gazette,”Issues around this are that the consumers have not really been educated. “It is easy to think that this concept is widely known.

“The average consumer does not know how to use it and what the benefits are.” He added, “That is reflected in the low uptake.”

Less than one in five retailers currently have the contactless payment method in store with 36 per cent confirming they have taken no steps to roll it out.

Richard Olds, CEO of Vista Support believes retailers feel the method does not offer good enough return on investment more than the potential threat to security it possibly poses, “A further 25% want the current transaction limit, recently increased to £20, to be raised to a level which makes the technology investment worthwhile for them.”

He added, “This contrasts with the fact that, unlike their customers, only 15% are still concerned over transaction security.”