Report: 100 Million Consumers Would Choose Contactless Cards

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Report: 100 Million Consumers Would Choose Contactless Cards

WALTHAM, Mass. -- A recent telephone survey conducted by Ipsos Insight and Peppercoin found that more than 50 percent of the total 1,001 respondents would use contactless credit card technology to purchase gasoline, items from fast food restaurants or corporate cafeterias, or groceries. That equates to more than 100 million Americans, the report stated.

In addition, the survey determined that more than 40 percent of Americans would use contactless cards for convenience store items and transportation fares. Also, almost 40 percent would use the cards to buy coffee or pay for parking and 30 percent, or 60 million people, would use contactless cards for video games at a vending machine or kiosk.

"This research shows that consumers are open to embracing the convenience of contactless cards and many of them are willing to use them to buy everyday items," said Matt Kleinschmit, vice president of Ipsos Insight. "This is particularly true for younger Americans, reinforcing the long-term growth potential of contactless card technology and the payment card industry."

More than 50 percent of the surveyed individuals between the ages of 18 and 24 indicated they would use contactless cards. The survey also found that consumers with incomes above $50,000 were more likely to use contactless cards than consumers with an income below that.

"Contactless payments represent a significant opportunity for the payments ecosystem. Consumers benefit from the increased convenience while merchants gain speed at the point of sale … contactless payments encourage consumers to return more frequently and spend more when they do -- translating into increased revenue for merchants," said Mark Friedman, president and CEO of Peppercoin.

Even though consumers are eager to make use of the technology, they have some concerns. The survey revealed that between 13 and 22 percent of consumers surveyed had security concerns that might keep them from using the contactless cards.