According to new research from Lloyds Bank Cardnet, many U.K. consumers are looking for more from retailers, especially when it comes to offering contactless payment options. Just under half of the consumers surveyed, 47 percent, said they expect, or would prefer, businesses to make contactless payments available for low-value transactions.
According to new research from Lloyds Bank Cardnet, many U.K. consumers are looking for more from retailers, especially when it comes to offering contactless payment options.
Just under half of the consumers surveyed, 47 percent, said they expect, or would prefer, businesses to make contactless payments available for low-value transactions, Finextra reported yesterday (July 22). Roughly 12 percent of respondents said there are not enough retailers even offering contactless payments, while almost 9 percent said the current spending limit of £20 (about $31) is too low.
The research showed that of those who do own contactless cards, 25 percent said the speed of transaction is what they enjoy the most about the payment option, while 24 percent preferred the ease of transaction.
But over a third (37 percent) of those asked what they liked the least when it comes to contactless payments expressed concerns about security.
In the U.K., there is still much debate over the spending limit tied to contactless payments, which will be raised by £10 to £30, nearly $16 to $47 respectively, starting September 2015.
The U.K., which first introduced contactless payments in 2007 with a spending limit of £10, has seen its popularity grow in leaps and bounds with the total worth of transactions tripling from £653 million (almost $1 billion) in 2013 to £2.32 billion (roughly $3.6 billion) in 2014.
Aidene Walsh, Lloyds Banking Group’s director of commercial cards and acquiring solutions, told Finextra: “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.”
Contactless card owners surveyed also expressed a desire to still receive a receipt for purchases made with the payment method (68 percent), while a smaller amount (15 percent) showed interest in electronic receipts.
“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,” Walsh continued.
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