Table of Contents
Introduction
-
- Abbreviations
Executive Summary
-
- Use of payment methods
- Cash is the most frequently used method…
-
- Figure 1: Use of payment methods, September 2014
- … but it is only the first choice when it comes to smaller purchases
-
- Figure 2: Use of payment methods, by type of transaction, September 2014
- Contactless cards
- Nearly a fifth have paid with a contactless card
-
- Figure 3: Ownership and use of contactless cards, September 2014
- Satisfaction with Chip & PIN is holding back contactless cards
-
- Figure 4: Reasons for not using a contactless card, despite owning one, September 2014
- Security of payment methods
- Cash is seen as the most secure option
-
- Figure 5: Confidence in security of payment methods, September 2014
- Factors affecting choice of payment method
- Convenience and speed are key for small transactions…
-
- Figure 6: Factors affecting choice of payment method for a small purchase, September 2014
- … while security is the main concern for larger purchases
-
- Figure 7: Factors affecting choice of payment method for a large purchase, September 2014
- Payments and retailers
- Choice of payment method is of relatively little importance to consumers
-
- Figure 8: Attitudes towards payment methods and retailers, September 2014
- What we think
Issues and Insights
-
- Make methods about more than just paying
- The facts
- The implications
- Mobile payments need to develop independent security identities
- The facts
- The implications
- A cashless society is widely expected, but not welcomed by most
- The facts
- The implications
Trend Application
-
- Will we trust Apple and Google with our financial data?
- A well-engaged youth can help boost mobile payments
- User-friendly spending charts can help with budgeting
Recent Developments in Payments
-
- Key points
- Expansion in contactless cards
- Adoption of contactless payments by TfL pushes contactless into the mainstream
- Issue rate of contactless cards is growing
- MasterCard and Zwipe have developed a biometric card
- Apple Pay set to revolutionise NFC industry
- Apple Pay rolls out in the US
- Cash on Tap
- Wearables
- Barclays prepares to launch bPay band…
- … while CaixaBank has brought payment wristbands to Spain
- Apple’s smartwatch to include Apple Pay
- Google Glass to allow users to ‘Nod to Pay’
- Mobile payment and wallet services
- PayPal to split from eBay after improvements to mobile services
- Zapp widens partnerships in preparation for launch
- Visa Europe to expand its V.me mobile wallet
- PayPal and eBay embrace Bitcoin
- Peer-to-peer mobile payments
- Paym enjoys strong debut…
- Social transactions
- Send cash in a tweet
- Online purchases set to be streamlined by Twitter Buy
- Venmo makes personal finance social
- Goodbye to paper money
Use of Payment Methods
-
- Key points
- Cash is still the most commonly-used payment method
-
- Figure 9: Use of different payment methods, September 2014
- Small dip in regular Chip & PIN use
- Most people have experience of many payment methods
-
- Figure 10: Repertoire of payment methods used, September 2014
- Young adults are most likely to use the most methods…
-
- Figure 11: Repertoire of payment methods used, by age, September 2014
- Resistance to innovation can be overcome…
- … but older consumers have so far shunned mobile payments
-
- Figure 12: Any use of mobile transfers, by age, September 2014
Preferred Payment Method by Type of Transaction
-
- Key points
- Cash is only first choice for the cheapest purchases
-
- Figure 13: Preferred payment methods, by type of transaction, September 2014
- Chip & PIN is first-choice for everything else…
- … and debit cards are generally favoured
- Purchasing habits are hitting cash use
Contactless Card Ownership and Use
-
- Key points
- Two fifths of consumers have a contactless card
-
- Figure 14: Ownership and use of contactless cards, September 2014
- Ownership of contactless cards has doubled in two years…
-
- Figure 15: Ownership of contactless cards, 2012-14
- … and owners are increasingly likely to use their cards
-
- Figure 16: Use of contactless cards by those who own one, 2012-14
- Young adults are most likely to use contactless feature…
-
- Figure 17: Use of contactless cards, by age, September 2014
- ... while Londoners continue to lead the way
- A third still do not want a contactless card
Barriers to Contactless Card Use
-
- Key points
- Satisfaction with Chip & PIN hinders contactless payments
-
- Figure 18: Reasons for not using contactless cards, September 2014
- Security fears also put people off
- Consumers are aware of improving infrastructure
-
- Figure 19: Agreement with the statement that “not enough shops accept contactless cards”, 2012-14
- Consumers are clear about the barriers that must be overcome
Attitudes towards Security of Payment Methods
-
- Key points
- Physical payments seem the most secure…
-
- Figure 20: Confidence in security of payment methods, September 2014
- … despite them having their own dangers
- People are happier to disclose card, not account, information
- Mobile payment platforms need to improve their security message
Factors Affecting Choice of Payment Method
-
- Key points
- Small purchases are dictated by convenience…
-
- Figure 21: Factors affecting choice of payment method for a small purchase, September 2014
- … while security and getting the best deal influence large payments
-
- Figure 22: Factors affecting choice of payment method for a large purchase, September 2014
- Making my money work for me
-
- Figure 23: Agreement with statements on credit card reward schemes, May 2014
- A third want help with maintaining budgets…
- … which apps can provide
- Who’s watching?
Attitudes towards Payment Methods and Retailers
-
- Key points
- Payment options will always be a marginal factor…
-
- Figure 24: Attitudes towards payment methods and retailers, September 2014
- … but can influence some consumers’ decisions
- Contactless is still not a major draw
-
- Figure 25: Agreement with the statement “I prefer shopping at retailers that accept contactless cards’, by ownership of contactless cards, September 2014
- People can see the cashless society on the horizon…
- … but most aren’t happy about it
Back to top