Among US-based payment cardholders, 75% prefer contactless cards to other payment methods
Whether it’s buying gas or paying for a restaurant tab, a new consumer survey from the leading payment, identity and digital security solutions provider Entrust Datacard found that the majority of U.S.-based payment cardholders (75%) prefer contactless cards as their primary payment method over chip insert, card swipe, mobile pay and cash.
Read More: GlobalFintechSeries Interview with Chuck Klein, Chief Executive Officer & Founder at IMM
“As many Americans deal with financial setbacks and heightened concerns around health and safety in the face of COVID-19, the value we are placing on contactless payments has increased markedly”
Based on responses from 1,000 U.S. cardholders who are familiar with contactless credit/debit card or “tap and pay” technology, the State of Contactless Cards Survey reveals consumers’ desire for frictionless payment methods and the access to a variety of card replacement options.
According to the survey’s results, an overwhelming majority (83%) of respondents believe contactless cards are here to stay and 61% believe it’s at least somewhat of a priority to have a contactless feature on their credit or debit card. This prioritization is most prominent among Gen Z, Millennials and Gen X when compared to Baby Boomers. In fact, 20% of Boomers reported they never use the contactless payment feature on their debit or credit card when making a purchase while this percentage is less than 10% for each of the other respective generations.
However, while contactless cards are gaining momentum with many in the U.S., the majority of consumers are still unaware of their card replacement options should they not have a contactless chip, or the card is lost or stolen. With respondents citing sanitation (70%) and speed (67%) as benefits of contactless cards, now is the opportune time for banks to educate their customers on the benefits of replacing their card with a contactless card from their bank.
“As many Americans deal with financial setbacks and heightened concerns around health and safety in the face of COVID-19, the value we are placing on contactless payments has increased markedly,” said Tony Ball, senior vice president for instant payment card issuance at Entrust Datacard. “Consumers want the ability to shop at their convenience, but also want to minimize personal contact with point of sale devices. Contactless cards are rising in popularity as a result.”
Read More: New Search Fund Model of Private Equity for Small Business Acquisitions
