Do you take cards? Payment cards still rule in a cashless society

Do you take cards? Payment cards still rule in a cashless society
04.09.2019 03:11 pm

Do you take cards? Payment cards still rule in a cashless society

Security , Authentication Technology

As the UK fast progresses towards a cashless society, consumers have made it clear they are not prepared to give up their bank cards. Research by IDEX Biometrics ASA has revealed three quarters (75%) of UK consumers are concerned about the UK becoming a cardless society, where they no longer have access to a physical debit card and could only rely on mobile payments. Evidently, UK consumers are actually more worried about the idea of a cardless society, than a cashless one.

For more than a third (37%) of consumers, as long as they have a debit card, the thought of a cashless society doesn’t bother them. Maybe not surprisingly, this is even more pronounced among young consumers, with 53% of 25-34-year-olds unworried about our growing cashless society, providing they still have a bank card.

These findings highlight that banks and financial institutions need to reconsider the cashless transition. This is true for all generations, as only 20% of all UK consumers believe we should already be a cashless society, but particularly so for the older generations, with only 9% of over 55s agreeing we should already be cashless.

In fact, despite the increasing popularity of smartphone payment apps, six-in-ten (60%) respondents would not give up their debit card in favour of mobile payments. This caution is likely stemming from security concerns, with a further 68% stating they still feel more secure using their debit card than a mobile payment and half (50%) of consumers concerned that contactless payments are insecure.

However, four-in-ten (41%) would trust the use of their fingerprint to authenticate payments from their bank card more than a PIN. This figure remains consistent across all age groups, highlighting consumers’ confidence in payment cards secured by biometric authentication.

Misuse of mobile payments is another major concern for consumers. 58% worry that if they lost their mobile phone, people would be able to access their bank accounts. In contrast, even if stolen or lost, a biometric bank card can’t be mis-used without the owner’s fingerprint.

“With UK consumers showing their continued attachment to bank cards, it’s time for the financial services industry to future-proof payment cards for the next generation. Customers are still sceptical about mobile payment apps but, given their security concerns, they also require more protection than a PIN currently provides,” comments David Orme, SVP of IDEX Biometrics ASA.

“This shows that there is clear demand for payment cards that provide the convenience of contactless payments with the added security of biometric fingerprint authentication. As the owner’s fingerprint needs to be present for biometric payment cards to work, reliable bank cards enhanced with biometric technology will prevent misuse and card fraud. This will bring reassurance to all consumers as the UK continues to progress towards a cashless society,” added Orme.

Methodology and sample:

1,000 interviews were conducted in the UK by Arlington Research, an independent market research agency, using an online methodology amongst a nationally representative sample of consumers, who have either a UK current account, and/or a credit card. All respondents were aged 18 and over. Quotas were applied to gender, the age of respondent and the region in which they reside to ensure that the sample is nationally representative (+/-1%).

Related News

Retail cash automation market booms as global installations surpass 700,000

Latest research shows retailers across the world are investing in technology that improves cash management and boosts security

Market outside Japan... Read more »

Experian partners with Global Data Consortium to bolster international customer identity verification

Experian and identity verification provider Global Data Consortium (GDC) have today announced a new partnership which will transform customer onboarding journeys for both... Read more »

FICO Offers Free Cyber Risk Score 90-Day Trial in Europe

Cyber exposure is one of the most rapidly growing risks in today’s digital world. Almost daily, the media report on companies that have suffered data breaches where criminals... Read more »

Leading Firms Collaborate with Mastercard to Further Secure Open Banking Ecosystem

Mastercard announces three key financial firms as the latest companies to start using Mastercard Open Banking Protect, safeguarding organisations who manage... Read more »

iProov to provide biometric technology to challenger bank Knab, part of AEGON

Today, iProov is proud to announce that its technology is to be deployed by Dutch challenger bank Knab, to provide an effortless online biometric experience to its nearly 500,... Read more »

FICO Awarded 13 New Patents for Responsible AI, Fraud and Decision Management

Silicon Valley analytic software firm FICO has been awarded 13 new patents related to fraud, artificial intelligence (AI) and decision management. In total, FICO currently... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel