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Data for today’s episode is provided by Mercator Advisory Group’s report –COVID-19: The Power Behind Contactless
Transaction Data for Contactless Is Unavailable, but Survey Data Isn’t:
- Transaction data pinpointing the number and dollar volume of contactless debit cards is unavailable, but Mercator consumer surveys definitively show that consumers are using contactless payments more frequently.
- Mercator finds that 35% of consumers who are familiar with contactless report making contactless payments more often.
- 46% of consumers report no change in their use of contactless payments.
- 19% of consumers report using contactless payments less or much less.
- An explanation for those who report using contactless less is that they are likely spending less in total and in person.
- 12% of consumers are now using contactless for the first time as a direct response to the COVID-19 pandemic.
- 44% of consumers have never used contactless cards.
COVID-19 has created consumer interest and use of contact-free payment experiences as fear of infection from surfaces, including a point-of-sale (POS) device, drives new behaviors. While reports and surveys proclaim cardholders’ interest in contactless technology, the actual number of contactless debit transactions authorized on a contactless card or mobile app remains elusive. This report, COVID-19: The Power Behind Contactless, considers the available market data and Mercator Advisory Group research to better understand the level of contactless payment activity and the degree to which COVID-19 is affecting its growth.
“The onset of the coronavirus created the perfect storm of events that is driving awareness more quickly than all the promotional activities have to date. Cardholders’ wellbeing is the incentive to adopt a new payment method. More consumers are now aware of the contactless capabilities they have on their debit card, which is driving new users in addition to increased use by current users,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.