UK consumers are confused about what contactless payments actually are, according to a survey of 1,000 shoppers conducted by secure card payments specialist The Logic Group.
It found more than a fifth – 21% – of consumers think a contactless transaction is a payment made online and 18% a payment where no human contact is involved, such as using a ticket machine.
Cash is most definitely king for the British shopper, it says and, for items under the value of £10, the majority of shoppers (80%) would regularly choose to pay by cash, followed by 39% opting for debit card and a quarter (25%) choosing credit card.
The survey also found 6% still choose to checkout using a cheque but only 3% would opt for contactless payment.
According to the study, one fifth of consumers carry less than £5 in cash on a daily basis, 23% carry £5-£20 and nearly one in 10 (9%) carry over £51.
Two thirds (67%) carry between one and five cards on a daily basis, be it credit or debit card, loyalty card, store cards, vouchers or mobile top up. And nearly one in 10 shoppers carry over 10 cards; while a further one in 10 feel no need to carry any cards at all, including payment cards.
Mark Kusionowicz, marketing director, The Logic Group, said: “In the UK alone, it’s estimated consumers make 22bn cash payments a year, worth a total of £266bn. However, over 80% of these transactions are for purchases of less than £15.
“This represents a huge opportunity for an alternative to cash that is faster, more convenient and more secure than notes and coins – and the emergence of contactless offers just this.
“However, there is clearly some work to be done in the industry to educate consumers not only to the benefits of contactless but also to what a contactless payment actually is.”