Table of Contents
Introduction
-
- Abbreviations
- Methodology
Executive Summary
-
- Current payment preferences
- A long way from the cashless society
-
- Figure 1: Key payment methods used by consumers, February 2012
- People believe banks should be forced to support cheques
- Only a quarter of contactless card owners have made a contactless payment
-
- Figure 2: Contactless card ownership, February 2012
- Payment fraud and security concerns
- The fear of fraud is greater than the reality
-
- Figure 3: Payment fraud experiences, February 2012
- The comfort of the familiar
- Interest in mobile payments
- More than two fifths would be interested in mobile-based NFC payments
-
- Figure 4: Interest in making mobile payments, February 2012
- Interest has fallen back since 2011
- Traditional early adopters lead the way
- Acceptance of mobile wallets
- Widespread interest in mobile wallet features
-
- Figure 5: Consumer interest in mobile wallet services, February 2012
- Banks still own the payments industry
- What we think
Issues in the Market
-
- How likely is it that people can be convinced to abandon cash?
- Will contactless be outdated before it ever hits the mainstream?
- How do people feel about being upgraded to contactless cards?
- Do people still use products they don’t trust?
- Will the US be more open than the UK to a move to mobile payments?
- Why does interest in mobile payments seem to have fallen back?
- How does interest in mobile payments differ between men and women?
- Can Apple make the leap into the payments market?
- How much can companies learn from their customers?
Future Opportunities
-
- Letting people forget
- Making the case for a revolution, not an evolution
Technological Developments
-
- Key points
- Contactless cards
- Contactless roll-out continues
- Number of retailers expands
- Mobile payments
- Peer-to-peer mobile payments
- PayPal
- Pingit
- Payments Council
- NFC-enabled mobile payments
- Quick Tap
- PayTag
- Mobile Wallets
- Project Oscar
- O2 Wallet
- Market challengers
- Square
- PayPal
- Starbucks
- Apple
Payment Methods Used by Consumers
-
- Key points
- No hint of a cashless society yet
-
- Figure 6: Type of payment methods used by consumers, February 2012
- More information doesn’t always lead to greater understanding
- The “credit” element of credit cards worries many
- Cheques refuse to go away
- Helping the aged? Or the wealthy?
-
- Figure 7: Cheque as a payment method, by age group and household income, February 2012
- Even the young want the option of being able to write a cheque
-
- Figure 8: Agreement with the statement “Banks should be forced to continue to give customers the option of having a chequebook”, February 2012
- The questionable benefits of “free” banking
- Using cheque alternatives to maintain control
- PayPal is truly mainstream
- Consumer-led function creep
Choice of Payment Method
-
- Key points
- Coffee is still a cash-only transaction
-
- Figure 9: Payment preferences for different transaction types, February 2012
- A rational choice to take the irrational option
- Younger people make less distinction between cash and card
- The political challenges of moving to a cashless society
- Brand intervention in action
Contactless Card Ownership and Use
-
- Key points
- One in 20 have used a contactless credit or debit card…
-
- Figure 10: Contactless card ownership, February 2012
- … but there is significant interest among non-users
- Do variations in card ownership reflect greater enthusiasm…
- … or a lack of consumer education?
- A lack of awareness presents risks for card issuers
- Frequency of use hints at contactless’ shortcomings
-
- Figure 11: Type of payment methods used by consumers, February 2012
Attitudes towards Contactless Cards
-
- Key points
- Security is a concern…
- … but customer reservations go deeper than fears of fraud
-
- Figure 12: Reasons for not using contactless cards, February 2012
- Qualified approval among the early adopters
-
- Figure 13: Agreement with the statement “Using my contactless card is more convenient than using chip and PIN”, February 2012
- Will contactless be outdated before it ever hits the mainstream?
- Seven in ten think that contactless cards should only be issued on request
-
- Figure 14: Attitudes towards the issue of contactless payment cards, February 2012
- Striking a balance between driving use and not alienating customers
Experience of Payment Fraud
-
- Key points
- Security is a concern for three fifths of respondents...
-
- Figure 15: Attitudes towards payment methods, February 2012
- ... but are fears of fraud more powerful than fraud itself?
-
- Figure 16: Payment fraud experiences, February 2012
- Cash – the acceptable face of fraud?
- Past experience makes people more wary...
-
- Figure 17: Level of concern over payment fraud, by payment fraud experiences, February 2012
- ... but it doesn’t stop them from considering new ways of paying
-
- Figure 18: Willingness to embrace new payment technology, by payment fraud experiences, February 2012
Trust in Payment Security
-
- Key points
- Mobile payments still not seen as secure
-
- Figure 19: Security concerns, February 2012
- Do people still use products they don’t trust?
- The view from the US
-
- Figure 20: Security concerns: A UK/US comparison , November 2011 & February 2012
- UK incumbents have an advantage over their US counterparts
- Mobile payments and security: the generation gap
-
- Figure 21: Security concerns in using mobile phone as a payment device, by gender, age and smartphone ownership, February 2012
Interest in Mobile Payments
-
- Key points
- Almost half show some interest in mobile payments
-
- Figure 22: Interest in making mobile payments, February 2012
- Interest in mobile payments has stalled
-
- Figure 23: Interest in making mobile payments, 2010-12
- A risk of over-promising…
- … but momentum is building
- A familiar set of early adopters
-
- Figure 24: Interest in making mobile payments, by gender, age, location and technology ownership, February 2012
- Security is a barrier – but not an insurmountable one
-
- Figure 25: Interest in making mobile payments, by security concerns in using mobile phone as a payment device, February 2012
- Preparing for emergencies
Interest in Mobile Wallets
-
- Key points
- Moving beyond payment
-
- Figure 26: Consumer interest in mobile wallet services, February 2012
- Familiarity with text banking will ease the move to mobile wallets…
- … but people are prepared to move beyond the familiar
- Just one in nine have no interest at all
-
- Figure 27: Repertoire of consumer interest in mobile wallet services, February 2012
- Figure 28: Repertoire of consumer interest in mobile wallet services, by gender, age and technology ownership, February 2012
- Moving from “that’s cool” to “that’s useful”
- The app advantage
-
- Figure 29: Interest in mobile wallet features among smartphone and tablet users, February 2012
- The payment-shaped gap in Apple’s product offering
- Can Apple make the leap?
- The difference between “I’d be interested” and “I’d apply for that”
-
- Figure 30: Interest in making mobile payments, by repertoire of consumer interest in mobile wallet services, February 2012
Preferred Provider of Mobile Wallet Services
-
- Key points
- Banks still own the payment space
-
- Figure 31: Preferred providers for mobile wallet services, February 2012
- Figure 32: Preferred providers for mobile wallet services, February 2012
- Younger people more prepared to look to alternative providers…
- … but “best” is not the same as “acceptable”
Attitudes Towards Payment Methods
-
- Key points
- The conservative consumer
-
- Figure 33: Attitudes towards new payment methods, February 2012
- Splitting the security conscious from the trusting
-
- Figure 34: Consumer attitudes towards payment methods, February 2012
- The Conservative: 38% of the sample
- The Security Conscious: 38% of the sample
- The Trusting: 38% of the sample
-
- Figure 35: Attitudes towards payment methods, by target groups, February 2012
- Learning from experience
-
- Figure 36: Payment fraud experiences, by target groups, February 2012
- The security conscious are wary – but willing...
-
- Figure 37: Interest in making mobile payments, by target groups, February 2012
- ... and have a strong level of interest in mobile wallet services
-
- Figure 38: Consumer interest in mobile wallet services, by target groups, February 2012
- No signs that the security conscious have greater trust in the banks
-
- Figure 39: Preferred providers for mobile wallet services, by target groups, February 2012
Appendix – Payment Methods Used by Consumers
-
-
- Figure 40: Cash as a payment method, by demographics, February 2012
-
- Figure 41: Credit card (using chip and PIN) as a payment method, by demographics, February 2012
-
- Figure 42: Debit card (using chip and PIN) as a payment method, by demographics, February 2012
-
- Figure 43: Credit card (online) as a payment method, by demographics, February 2012
-
- Figure 44: Debit card (online) as a payment method, by demographics, February 2012
-
- Figure 45: Cheque as a payment method, by demographics, February 2012
-
- Figure 46: Direct debit/standing order as a payment method, by demographics, February 2012
-
- Figure 47: Bank transfer as a payment method, by demographics, February 2012
-
- Figure 48: PayPal as a payment method, by demographics, February 2012
-
- Figure 49: Agreement with the statement ‘Banks should be forced to continue to give customers the option of having a chequebook’, by demographics, February 2012
-
Appendix – Choice of Payment Method
-
-
- Figure 50: Payment preferences for cup of coffee, by demographics, February 2012
- Figure 51: Payment preferences for weekly grocery shop, by demographics, February 2012
-
- Figure 52: Payment preferences for electricity bill, by demographics, February 2012
- Figure 53: Payment preferences for buying a DVD/book/CD on the high street, by demographics, February 2012
-
- Figure 54: Payment preferences for buying a DVD/book/CD online, by demographics, February 2012
- Figure 55: Payment preferences for a holiday, by demographics, February 2012
-
- Figure 56: Payment preferences for a new washing machine, by demographics, February 2012
- Figure 57: Payment preferences for new clothes, by demographics, February 2012
-
Appendix – Contactless Card Ownership and Use
-
-
- Figure 58: Contactless card ownership, by demographics, February 2012
-
Appendix – Attitudes Towards Contactless Cards
-
-
- Figure 59: Reasons for not using contactless cards, by demographics, February 2012
- Figure 60: Agreement with the statement ‘Banks should only issue contactless cards when customers specifically request them’, by demographics, February 2012
-
Appendix – Experience of Payment Fraud
-
-
- Figure 61: Payment fraud experiences, by demographics, February 2012
- Figure 62: Agreement with the statement ‘I am worried about being a victim of payment fraud’, by demographics, February 2012
-
Appendix – Trust in Payment Security
-
-
- Figure 63: Security concerns in using credit cards as a payment device, by demographics, February 2012
- Figure 64: Security concerns in using debit cards as a payment device, by demographics, February 2012
-
- Figure 65: Security concerns in using mobile phone as a payment device, by demographics, February 2012
- Figure 66: Security concerns in using contactless payment cards as a payment device, by demographics, February 2012
-
Appendix – Interest in Mobile Payments
-
-
- Figure 67: Interest in making mobile payments, by demographics, February 2012
-
Appendix – Interest in Mobile Wallets
-
-
- Figure 68: Interest in checking card/bank balance in mobile wallet services, by demographics, February 2012
- Figure 69: Interest in receiving an instant overdraft alert, by demographics, February 2012
-
- Figure 70: Interest in ability to transfer small amounts to friends via your mobile, by demographics, February 2012
- Figure 71: Interest in ability to store discount vouchers on phone and apply them at the checkout, by demographics, February 2012
-
- Figure 72: interest in ability to store other types of cards, by demographics, February 2012
- Figure 73: Interest in ability to store multiple credit and debit cards in one mobile wallet, by demographics, February 2012
-
- Figure 74: Interest in ability to store medical/personal records in case of emergency, by demographics, February 2012
- Figure 75: Repertoire of consumer interest in mobile wallet services, by demographics, February 2012
-
Appendix – Preferred Provider of Mobile Wallet Services
-
-
- Figure 76: Ability to store multiple credit and debit cards in one mobile wallet, by demographics, February 2012
- Figure 77: Ability to check your card balance before buy something, by demographics, February 2012
-
- Figure 78: Instant alert if a purchase would take you over overdraft limit, by demographics, February 2012
- Figure 79: Personalised offers based on location, by demographics, February 2012
-
- Figure 80: Ability to store discount vouchers on phone and apply them at the checkout, by demographics, February 2012
- Figure 81: Ability to store other types of cards, by demographics, February 2012
-
- Figure 82: Ability to store medical/personal records in case of emergency, by demographics, February 2012
- Figure 83: Ability to transfer small amounts to friends, by demographics, February 2012
-
Appendix – Attitudes Towards Payment Methods
-
-
- Figure 84: Target groups, by demographics, February 2012
- Figure 85: Agreement with the statement ‘I would not be interested in new payment technology – I’m happy with what I’ve got’, by demographics, February 2012
-
Back to top