RETAIL ENVIRONMENT
Risk-averse consumers still wary of wearable technology
Despite the hype, consumers are still wary when it comes to the security of their payments, according to a new survey.
The research conducted by Equifax and Gorkana among a representative sample of 1,005 UK adults during February this year, revealed that using a debit or credit card with a PIN number is still the preferred method of payment for 42 per cent of people in the UK.
Contactless methods followed at 34 per cent, with the majority of these respondents (31 per cent) preferring a contactless card to using their phone or wearable technology (3 per cent).
When asked why they use contactless rather than cash, the speed of transaction was cited by 34 per cent as the main advantage, while 21 per cent said it was more convenient than making a trip to a cash point. Only 16 per cent felt that contactless payments are more secure than carrying cash.
The research also found two thirds of consumers are happy with the current £30 contactless payment limit and only 16 per cent thought it should be increased.
Despite the rising popularity of using wearable technology like watches to make payments, 36 per cent did not expect this payment method to ever overtake cards.
Sarah Lewis, UK head of ID and fraud at Equifax, said: “The rise in popularity of contactless and wearable payment methods is a hot topic right now, but our research shows that retailers and service providers are going to have to accept a variety of payment types for some time to come.
“There has been talk about increasing the contactless payment limit, but this would simply increase the incentive for criminals to steal contactless cards, resulting in higher levels of related fraudulent activity,” she added. “Contactless and wearable payments will continue to grow in popularity, but the financial services industry has a lot of work to do to make customers completely comfortable with these options.”
