![]() | ||
|
Headlines via Email RSS Feed
|
||
|
News Now LiveWire
Study: Consumers indicate interest in contactless cards ATLANTA (5/22/07)--A significant number of respondent consumers indicate an interest in using contactless payment methods instead of cash for small purchases, according to a recent research study by Synergistics Research Corp. entitled, "The Consumer Perspective on Micro-Payments." This study included a national online survey of 1,013 consumers, age 18 or older. When respondents were asked how likely they were to use contactless payment methods instead of cash for small purchased of less than $5, one in six said that they would be "very" likely to do so. Overall, nearly half indicated some likelihood of using contactless payments. The study indicated that intent to use contactless payments grows with rising household income, and is wider among younger consumers (18- to 34-year-olds). "The infrastructure for contactless payments is taking shape," said Genie M. Driskill, Synergistics Research Corp chief operating officer. "There currently are 46,000 merchant locations accepting contactless payments, and more than 18 million contactless cards in the hands of consumers. The development and ongoing implementation of contactless payment methods may very much impact consumers' preferences and behavior in terms of micro-payment activity." She continued: "Contactless cards, which also can be used for large purchases, should continue to be strongly promoted as a means of moving consumers away from using cash for point-of-sale micro-payments. Although other contactless systems--wireless devices and biometrics--do receive some promising response, the current payments infrastructure can most quickly accommodate a card-based contactless system." "Increasing merchant acceptance and getting more cards into the hands of consumers is essential to grow usage of contactless payments," Driskill concluded. The Credit Union National Association (CUNA) 2006-2007 E-Scan, an annual report used for credit unions' strategic planning, also listed some key findings regarding contactless payment technology. Among the findings are:
One of the strategic considerations that the E-Scan discussed is the fact that most credit unions don't have the technical expertise to evaluate and build the programs needed to deploy contactless card programs. Collectively, however, E-Scan said that credit unions have an opportunity to differentiate themselves and deliver tremendous value to their members by embracing the technological shift and market interest. E-Scan added that if a credit union takes no action, there's a high risk of erosion of its position within the contactless payments market.
More CU/System |
||
|
Copyright © 2009 - Credit Union National Association, Inc. |
||