Contactless Cards - Tentative Steps - New Market Research Report

Recently published research from Timetric, "Contactless Cards - Tentative Steps", is now available at Fast Market Research

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Boston, MA -- (SBWire) -- 06/26/2012 --This report presents the findings of research into the growth of this payment technology in key regions around the world. The picture that emerges is one of fragmentation and complex commercial models, with a marked lag between contactless card issuance and merchant acceptance, even in those markets considered to be well developed. In the US for example, there are around 100m contactless cards in issue, yet only a relatively small percentage of merchant outlets are reported to accept this form of payment, despite it being available for nearly ten years. Migration to chip and PIN is a more emotive topic in the US, with retailing giant Walmart making its position clear in the media as being in support of this more secure payment method, ahead of the introduction of contactless payments. This makes sense when the level of plastic card fraud in the US is taken into consideration. The push for migration is also in line with the strategic aims of large retailers to gain a greater share of consumers' wallets by broadening the range of products and services offered in stores. Merchant acceptance of this payment methodology, alongside the issuance of cards and other payment devices, is crucial to the success of contactless payments. The majority of merchants are unlikely to be willing to fund the migration to contactless payments unless a clear business case and short payback period can be identified to them. In a number of countries, for example, Turkey and the UK, the card issuers and payment processing companies are footing the bill for the introduction of the required technology, and this will need to continue in order to increase merchant acceptance of contactless payments until the benefits of migration have been conveyed.

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Key Highlights

- Contactless payments are being pushed by the payment providers without necessarily being demanded by consumers
- Aimed at displacing cash, which is generally disliked by merchants and financial institutions due to the costs incurred in its handling (including security), contactless payments face strong competition from increasingly popular chip and PIN debit card payments
- Although contactless cards are the short-term future for low-value payments, over time they will converge with mobile handsets

Scope

- The demand and utilisation of contactless cards worldwide is uneven. This report covers both the fast moving and high profile utilisation in Asia, and the more measured, supplier led markets in Europe and the US
- The relationship between cards and cash is discussed in detail in this report
- The report presents an analysis of the different reasons for contactless payment usage; security, speed, convenience and flexibility
- This report highlights case studies from the US, UK and Asia, and the results of one to one interviews

Companies Mentioned in this Report: Barclaycard, Mastercard, Visa, JP Morgan, Wells Fargo, Garanti, PayPass, payWave, SPAR

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View this press release online at: http://rwire.com/149434