Over a third of Scots would not use contactless over cash

Could fear of fraud, or concerns about financial management be holding consumers back from new payment tech?

www.equifax.co.uk

Recent figures from UK Finance revealed that contactless card fraud hit £14 million in losses in 2017. Uncertainty about security could be one of the reasons that over a third (34%) of Scottish consumers said they would not use contactless over cash, in an online study commissioned by credit information expert, Equifax.

The research, conducted with Gorkana, found that a debit or credit card with a pin number is still the preferred method of payment for 33% of Scots, compared to 42% of the UK overall. Contactless came second (32%), followed by cash (25%), whilst only 3% use their phone or wearable technology.

When asked when they would use contactless over cash, 34% of Scottish consumers said they would never choose to use contactless rather than cash. For 26% the speed of contactless is the benefit; 25% said it’s more convenient than making a trip to the cashpoint and 15% think it’s more secure than cash.

[1] https://www.ukfinance.org.uk/wp-content/uploads/2018/03/UKFinance_2017-annual-fraud-update-FINAL.pdf – page 8

The majority of consumers in Scotland (74%) are also happy with the current £30 contactless payment limit. However, 12% would like to see it increased. In comparison, London consumers top the table, with 21% wanting to see an increase.

“Many people are benefitting from the convenience and speed of contactless. £3,913.3 million was spent in the UK in April using a contactless card, an increase of 147.6% on the previous year,”[2] said Lisa Hardstaff, credit information expert at Equifax.“But it could be the fear of fraud if they lose their card, or concerns about keeping track of payments that could be holding some consumers back.

“We offer consumers useful guidance in our Knowledge Centre about how to make the most of this exciting new payment technology. But the bottom line is, as new technology makes it easier and more convenient to spend, consumers need to step up the care they take over where they keep their cards, and how they are used. And they need to pay close attention to bank and credit card statements, as well as keep an eye on their credit report to watch out for any unusual – or out of control – spending.”