2012 set to be the tipping point for mainstream contactless adoption
London, 22 December 2011 – Visa Europe today launched its second quarterly Contactless Barometer study. The Barometer canvassed perceptions of contactless technologies across the UK, Poland and Turkey, based on surveys of 1,700 banked individuals and in-depth panel sessions with around 500 contactless card owners per market.
The study shows that contactless owners value the convenience and ease of contactless payments, but suggests that the current relatively low acceptance levels in some markets is still preventing usage from becoming an every day habit.
Consumers envision a contactless future across cards and mobile
Seventy seven per cent of contactless owners across all three markets agreed or strongly agreed that contactless technology would ultimately become more commonplace than cash as a payment method (UK: 73%, Poland: 79%, Turkey: 79%). Eighty seven per cent also agreed that contactless will be instrumental in bringing mobile contactless payments to market in the near future (UK: 84%, Poland: 89%, Turkey: 89%).
Mark Austin, Head of Contactless for Visa Europe said: “People with experience of contactless cards are starting to see it as the first step to the arrival of mobile payments. The tipping point to more mainstream acceptance will be availability: the more chance consumers have to use their contactless cards, the more enthusiastic their response becomes. For us, London 2012 will be a major tipping point in the UK, with thousands of new contactless terminals installed across the Olympic venues to make payments as easy and convenient as they can possibly be.”
Major retailer rollouts drive significant usage increase
The proportion of contactless owners who cite the availability of contactless Point of Sale (PoS) terminals as a preventative to usage has increased (34% of UK contactless users vs. 23% the previous quarter). Where acceptance has increased, usage has grown significantly. For example, as a result of McDonald’s nationwide rollout of contactless terminals in the UK, 32% of UK card owners have now used their contactless card to pay for fast food, compared to just 12% in the previous quarter.
Banks and retailers hold the key to further increasing contactless awareness
The research also provides insight into the role that banks and retailers can play in further stimulating consumer adoption of contactless payments.
Communication received from the bank either before or after receipt of a contactless card plays a vital role in driving understanding and awareness of the new service among contactless cardholders (UK: 46%, Poland: 55%, Turkey: 38%), while external communications like TV and poster advertising is also cited by respondents as important (UK: 14%, Poland: 12%, Turkey: 15%). Collateral at the Point of Sale also plays its part in reminding consumers where they can use contactless payments (UK: 13%, Poland: 8%, Turkey 17%).
The research also suggested that incentives to use the technology would also be of interest once contactless infrastructure reaches critical mass (UK: 39%, Poland: 48%, Turkey: 34%).
Austin added: “With the number of contactless cards in circulation in the UK forecast to top thirty million by the end of next year and London 2012 set to showcase how the technology offers added convenience, the next twelve months provide an opportunity for the industry to capitalise on contactless payments and further connect with consumers.”
About the Contactless Barometer
Visa Europe’s Contactless Barometer is a benchmark study looking at consumer attitudes to new payment methods, developed from external consumer research.
The Contactless Barometer consists of two surveys:
1. An offline omnibus survey amongst roughly 1,700 banked consumers per market. The omnibus survey measures awareness and usage of contactless cards amongst a nationally representative sample of the overall banked population
2. An in-depth Contactless owner survey carried out amongst an online panel of roughly 500 contactless card owners per market. The Contactless survey delivers an in-depth understanding of behaviour, attitudes and usage amongst owners of contactless cards (users and non-users)
Two waves of the Contactless barometer have been conducted thus far:
• Wave 1 was conducted in March 2011
• Wave 2 was conducted in September 2011
About Visa Europe
There are currently over 26 million contactless Visa cards across Europe, distributed by 54 different issuing banks, with over 175,000 contactless terminals. 17 million of these cards and 75,000 of these terminals are within the UK. Monthly contactless spend in the UK has tripled since the start of 2011, with total contactless spend across Europe almost quadrupling in the same period. By the end of the year there will be 30 million contactless Visa cards in circulation across Europe, with 50 million expected by the end of 2012.
Visa Europe is owned and operated by more than 4,000 European member banks and was incorporated in July 2004. In October 2007, Visa Europe became independent of the new global Visa Inc., with an exclusive, irrevocable and perpetual licence in Europe. As a dedicated European payment system it is able to respond quickly to the specific market needs of European banks and their customers – cardholders and retailers – and to meet the European Commission’s objective to create a true internal market for payments.
Visa enjoys unsurpassed acceptance around the world. In addition, Visa/PLUS is one of the world’s largest global ATM networks, offering cash access in local currency in over 200 countries.
For more information, visit http://www.visaeurope.com/
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