March 25, 2011 10:59 AM Eastern Daylight Time
Latest report from VRL highlights a lag between contactless card issuance and merchant acceptance of this form of payment
LONDON--(BUSINESS WIRE)--Top financial and professional services information provider VRL has released a new report ‘Contactless Cards: Tentative Steps’ which examines market take up of contactless card across the US, Europe and Asia Pacific. While there has been significant media attention around the growth of contactless cards, this report looks at whether there is real momentum behind this payment technology.The picture that emerges is one of fragmentation and complex commercial models, with the majority of merchants unlikely to fund migration to contactless payments unless a clear business case can be identified. This is particularly evident in the US where there are 100 million contactless cards in issue, yet only two percent of merchants are reported to accept this form of payment.
In the report, industry specialist Sarah Richardson-Clarke examines worldwide trends finding that in countries such as Turkey and the UK, card issuers and payment processing companies are paying for the introduction of the required technology to encourage growth. Outside the US, UK card providers are the most proactive, with over 11 million cards in circulation by the start of 2011.
Adoption of contactless cards is most prevalent in the retail convenience market where speed of service is vital. Global companies in this space using contactless cards include McDonald’s and Starbucks. Outside the large convenience retailers however there is little take up. The report also found that contactless and PIN-less payments are capped at £15 in the UK and $25 in the US, above which a PIN or signature is required which somewhat defeats the purpose.
‘Contactless Cards: Tentative Steps’ includes detail on worldwide contactless card schemes including Visa payWave and MasterCard PayPass, and outlines the future evolution of contactless cards, suggesting that contactless mobile payments will likely be the way forward.
For further details on how to purchase a copy of the report or for more information please call Jeannie Lam on +44(0)20 7563 5605 or email info@vrlfinancialnews.com.
VRL industry reports provide the analytical intelligence needed to make better-informed business decisions. Reviewing the most pressing issues and trends impacting on the world of finance, VRL reports cover a broad range of topics.
For more details visit: http://www.vrl-financial-news.com/reports.
