Mobile-payment advocates can take heart knowing that new survey data from Visa Europe suggest most consumers in the region believe contactless-payment technology will help to drive widespread mobile-payment adoption.
But hands-on experience with contactless payment is still relatively low in Europe, even in the United Kingdom, where a push is on to blanket London with contactless cards and acceptance by the time the Olympic Summer Games kick off in July.
Many consumers first would like an incentive to try out contactless payment, Visa Europe said in a press release.
For its second quarterly Contactless Barometer report released Dec. 22, Visa Europe in September surveyed 2,200 bank customers in three European countries. The research found that 89% of respondents in Poland and Turkey and 84% in the United Kingdom believed contactless payment would be “instrumental” in bringing mobile payments to market soon.
Most respondents–79% each in Poland and Turkey and 73% in the UK–agreed that contactless technology ultimately would become more commonplace than cash for routine payments.
Some 34% of UK respondents said the lack of available contactless terminals is a barrier, down slightly from 37% who said so in the first Contactless Barometer survey conducted in March (
Where acceptance has increased, use of the technology has grown significantly. Some 32% of UK respondents said they had used their contactless card to pay for fast food, up from 12% who did in the previous survey. McDonald’s Corp. in May announced the rollout of contactless terminals in all of its 1,200 UK outlets, and that likely caused the uptick, Visa Europe said (
Incentives would help drive contactless card use, according to 48% of survey respondents from Poland, 39% from the UK and 17% from Turkey.
Bank communications announcing or explaining how to use contactless cards would play “a vital role” in driving card use among new contactless cardholders, according to 55% of respondents in Poland, 46% of UK respondents and 38% of those from Turkey.
Advertising on TV and via posters is important in drive card use, according to 15% of respondents from Turkey, 14% from the UK respondents and 12% from Poland.
Point-of-sale signage touting contactless also was important to drive card use for 17% of respondents from Turkey, 13% from the UK and 8% from Poland.
The total number of Visa contactless cards in circulation in Europe will rise by 67%, to 50 million by the end of 2012 from 30 million today, Visa Europe predicts.
The UK alone has 17 million contactless Visa cards in circulation, and that total could increase to 30 million by the end of 2012, Mark Austin, Visa Europe head of contactless, said in the release.
In Europe, 54 issuers so far have distributed contactless cards, and more than 175,000 payment terminals are equipped to accept them, the card brand said in its release.
Visa Europe gathered its survey data through in-person and focus-group discussions with 1,700 bank customers and 500 holders of contactless cards in each of the three markets.
"With the number of contactless cards in circulation in the UK forecast to top 30 million by the end of next year and London 2012 set to showcase how the technology offers added convenience, the next 12 months provide an opportunity for the industry to capitalize on contactless payments and further connect with consumers,” Austin said in the release.
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