Abstract
Overview
This report includes data-backed insight into the competitive challenges
facing card issuers and payment networks, and in turn the opportunities for
wireless carriers and other players regarding contactless technology
implementations. Momentum for contactless payments has grown in the past year,
with large card issuers and payment networks moving forward with product and
technology rollouts. Analysis of consumer attitudes surrounding the technology
will enable industry players- both merchants and issuers- to understand the
evolution of contactless payment technology in the coming years.
Primary Questions
- What are consumers' concerns regarding contactless technology?
- Which demographic groups are more likely to adopt contactless technology
and why?
- How can payment networks grow acceptance beyond small value transaction
merchants?
- What are the trends- technology and otherwise- that can accelerate
contactless adoption?
Findings and Analysis
While more rapid checkout provides some immediate market value for certain
merchants, companies must search for all-important killer applications for
widespread contactless technology adoption. Embedding contactless payments in
cell phones represents an opportunity for mass consumer adoption and merchant
acceptance. Greater availability of over-the-air (OTA) provisioning and other
technology solutions that allow for download of payment information to phones
will forge this path. But networks and issuers must be certain to continuously
address and allay the consumer security concerns that have arisen and will
continue to develop surrounding contactless technology. Consumers aged 18-24
show both a higher propensity to use contactless payments, greater concern
with usability rather than security, and an elevated likelihood of using cell
phones for payment. They are a prime target for this mass adoption.
Audience:
Card Issuers, Payment Networks, Wireless Network Operators, Payments Vendors,
and Handset Manufacturers
Companies/Organizations Mentioned in Report
- 7-Eleven
- Giesecke & Devrient
- Paypal
- ViVOtech
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