Contactless payment options are being used by only 5% of shoppers in the stores where it is available, according to a survey on behalf of IT services provider to the retail and hospitality markets, Vista Retail Support.
More than one third of retailers (37%) believe a lack of awareness is the main factor holding back consumer take-up, though 30% recognise end-customers are still concerned about the security of contactless transactions.
“There has been much hype around contactless payment methods as the ‘next big thing’ in retail,” said Richard Olds, CEO, Vista Support. “Yet these results confirm there is a major awareness programme to be undertaken before consumers understand and have confidence in what contactless can offer.”
The survey looked at the business impact of cashless payments on major high street retailers, independents and providers of leisure and other services to UK consumers.
Fewer than one in five retailers (18%) currently have some form of contactless payment system in place and 38% have no plans to offer customers this option for their goods or services, said Vista Retail Support.
The main reasons for this are financial, as 45% require new commercial models to make contactless more attractive.
“A further 25% want the current transaction limit, recently increased to £20, to be raised to a level which makes the technology investment worthwhile for them,” said Olds.
“This contrasts with the fact, unlike their customers, only 15% are still concerned over transaction security,” he said.