Contactless payments have not caught on in the UK because consumers don't think payments are safe without a PIN, says SmartDebit, a Surrey-based payments processor in the UK, in response to recent figures published by ICM Research.
The figures suggest most consumers who have contactless payment cards don't use them.
"Consumers are concerned that if their card is lost or stolen, it could be easily used to purchase goods by someone else" because the transactions don't call for use of a PIN, SmartDebit says in an issued statement.
However, transactions with contactless cards have the same consumer protections as other cards do, SmartDebit says.
The ICM Research study found that from the 11 stores visited, only three were promoting contactless payments.
Without more of a promotional effort, consumers will continue to opt for the "traditional chip-and-PIN method" in the UK, SmartDebit says.
The research stated that only a third of people with a contactless payment card have used it to purchase an item, which equates to just 8% of all consumers, ICM states.
The research also delved into the behavior of those who used contactless payments, revealing that just 12% of the people in that group use contactless payments on at least a weekly basis. The majority of those who do use it spend less than £10 ($16.15 U.S.) per transaction.
"There is a huge opportunity for retailers to drive revenues by developing and implementing a successful contactless payments strategy," says ICM associate director Jamie Belnikoff in a press release.
"However, as is often the case with new technology, it takes time to catch on, and there's work to be done to communicate the advantages of contactless payment," Belnikoff adds.
