75% of cardholders prefer contactless cards to other payment methods
Based on responses from 1,000 U.S. cardholders who are familiar with contactless credit/debit card or “tap and pay” technology, a new Entrust Datacard survey reveals that 75% of U.S.-based payment cardholders prefer contactless cards as their primary payment method over chip insert, card swipe, mobile pay and cash.
Contactless cards are here to stay
According to the survey’s results, 83% of respondents believe contactless cards are here to stay and 61% believe it’s at least somewhat of a priority to have a contactless feature on their credit or debit card. This prioritization is most prominent among Gen Z, Millennials and Gen X when compared to Baby Boomers.
In fact, 20% of Boomers reported they never use the contactless payment feature on their debit or credit card when making a purchase while this percentage is less than 10% for each of the other respective generations.
However, while contactless cards are gaining momentum with many in the U.S., the majority of consumers are still unaware of their card replacement options should they not have a contactless chip, or the card is lost or stolen.
Time for banks to educate their customers
With respondents citing sanitation (70%) and speed (67%) as benefits of contactless cards, now is the opportune time for banks to educate their customers on the benefits of replacing their card with a contactless card from their bank.
“As many Americans deal with financial setbacks and heightened concerns around health and safety in the face of COVID-19, the value we are placing on contactless payments has increased markedly,” said Tony Ball, senior vice president for instant payment card issuance at Entrust Datacard.
“Consumers want the ability to shop at their convenience, but also want to minimize personal contact with point of sale devices. Contactless cards are rising in popularity as a result.”
For faster card replacement, visiting a branch is best
Out of the 71% of respondents who cited losing their payment card, 84% notified their bank via phone while only 22% visited a physical bank branch in hopes of getting a replacement card right away.
73% of respondents who notified the bank by phone had to wait 1-7 days for a new card to be delivered by mail. By contrast, 58% of respondents who notified the bank at the branch got a new card instantly.
Instant payment card issuance unawareness
Despite contactless cards growing in popularity, many consumers are unaware of whether or not their banks or credit unions offer instant issuance or replacement of contactless debit or credit cards.
According to the results, 64% of respondents said their banks offer instant card issuance and replacement (63%), yet around one-fourth were unsure of whether their bank offered these options (27% and 24%, respectively) suggesting both an education and marketing opportunity for banks on card issuance solutions.