PARTNER NEWS: Contactless payment systems remain largely unfamiliar to US consumers despite a high level of satisfaction with the technology. Adoption of contactless payments, meanwhile, is high in Australia and the UK, but mobile payments remain limited, research commissioned by NXP has found.
Contactless payment systems remain largely unfamiliar to U.S. consumers despite a high level of satisfaction with the technology’s speed, convenience of ease-of-use. By contrast, adoption of contactless card payment is high in Australia and the U.K., but mobile payments remains limited, according to the results of a research study commissioned by NXP Semiconductors.
Only about 20% of U.S. consumers have used contactless payment systems such as Apple Pay, Samsung Pay and Android Pay to make retail purchases, according to the study, conducted by market research firm Creative Strategies Inc. By contrast, more than 85% of consumers in Australia and nearly 80% of consumers in the U.K. reported having used contactless payment systems in retail transactions.
“More than half of U.S. consumers have little or no familiarity with various forms of contactless payment technology. We feel this is largely because retailer implementation has been lackluster,” said Ben Bajarian, director of the consumer technology practice at Creative Strategies. “Lack of education remains the largest barrier to widespread adoption in the U.S.”
A majority of U.S. consumers reported they would use contactless payment for over half their purchases if they knew that form of payment was supported, with 45-59 year olds being the age range to most often use contactless for every single transaction. In contrast, 30-44 year olds in Australia and the UK are the most likely to use contactless for every single purchase.
“The new research from Creative Strategies demonstrates that consumers who use contactless payment systems are overwhelmingly satisfied with the convenience and speed of the experience. It’s doing away with the need to carry cash or a check book—just wave your smartphone or card in front of the payment terminal. Plus, it’s more secure,” said Richard Char, senior vice president, business development, Verifone. “This is great news to us as we are focused on leveraging global adoption of consumer smart devices with meaningful and valuable commerce and payment transactions in a world that gets more and more connected.”
The survey also found that 40% of US consumers would be likely or highly like to use contactless payment more often if they were offered exclusive loyalty points/perks or exclusive discounts. In all three markets, consumers said they were looking to the retailers to educate them on the security benefits of contactless payments.
Among U.S. consumers who do use contactless payment technology, 77% reported that they were satisfied or very satisfied with the experience.
NXP is publicizing the research produced by Creative Strategies as a way to encourage broader adoption of contactless payment technology in the U.S. As a broad supplier of semiconductor products, NXP offers solutions for contactless payment connectivity, including Near Field Communication (NFC), security, software and services.
Details for research findings will be presented at an event hosted by NXP during Money 2020 in Las Vegas at dbBrasserie Restaurant Row at the Venetian Hotel from 6-8 p.m. PT. Analyst firm Creative Strategies will present the latest findings on consumer behaviors and perceptions around contactless payment. The event will also feature a panel discussion in which NXP, Mastercard and Verifone will explore the opportunities and challenges that lay ahead contactless payment. Media interested in attending can RSVP by emailing Dylan McGrath, firstname.lastname@example.org.
NXP Semiconductors enables secure connections and infrastructure for a smarter world, advancing solutions that make lives easier, better and safer. As the world leader in secure connectivity solutions for embedded applications, NXP is driving innovation in the secure connected vehicle, end-to-end security & privacy and smart connected solutions markets. Built on more than 60 years of combined experience and expertise, the company has 44,000 employees in more than 35 countries and posted revenue of $6.1 billion in 2015. Find out more at www.nxp.com.
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