EPayments Project Final Report of Initial Project Work rnib innovation Unit

British Retail Consortium

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  Three months into the trial in July 2003, showed that 89% were aware of chip and PIN and 83% were in favour of its introduction
  
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  Disabled customers generally viewed chip and PIN positively, but experience varied depending on the type of disability.
  

Promoting Contactless Payments Usage and

Acceptance

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  Issuer best practices for driving consumer awareness and use of contactless payments,
  
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  Merchant best practices for driving consumer use and accepting contactless payments successfully at the point-of-sale (POS)
  

the United States

for gender, age and household income compared to the online consumer average

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  Of the over 2,400 respondents who indicated that they have used or are likely to use a contactless payment option, 84% considered the option to be at least as safe as a magnetic stripe credit or debit card.
  
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  In fact, 41% of both current users and future adopters cited contactless payments being "a secure way to pay" as a reason to use contactless payments.
  

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  Series of presentations outlining market analysis
  

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  Overall customer experience, faster transaction time and overall confidence in shopping given as top three reasons for contactless
  

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  It is the intent of this report to objectively analyze the payments options available to consumers, the relative costs and benefits and what the future portends.
  

Behaviours of Recipients of

Network Branded Gift Cards

Card Users

A Public Opinion Survey

prepaid card

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  Reloadable prepaid cards are most used for online shopping (64%),
  
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  everyday purchases (56%), paying bills (52%), to keep spending within a budget (41%), to sign up for services like phone/cable (39%) and for getting cash at an ATM (37%).
  

and older cardholders in 11 locations across the UK

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  A large majority (86%) were happy to use the new system
  
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  Most found entering a PIN easy to do
  
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  Visually impaired cardholders felt that they could complete a purchase more easily on their own
  

Contactless Payment Systems in Retail

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  Info on throughput rates
  

A literature review

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  Review prior literature on mobile payments, analyze the factors that impact mobile payment services markets, and suggest directions for future research in this still emerging field.
  

International consumer experiences of buying goods and services

on their mobile phones

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  The findings reveal the need to increase market choice and competition, enhance innovation to overcome technical impediments, and improve business practices and consumer protection in m-commerce
  

NFC and the Contactless Financial

Payments Infrastructure

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  This white paper will focus on the implementation of proximity mobile payments using NFC-enabled mobile devices and the contactless financial payments infrastructure
  

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  Review of the prepaid market in the next 5 years
  

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  The Centre for Retail Research has been commissioned by Visa Europe to investigate the Store of the Future 2012-15 by interviewing 300 retailers (27,000 stores and €308bn sales) in seven European countries and 1,000 shoppers.
  

Visa Europe

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  Retailers found Chip and PIN easier to use (81.0%) and that more than 90% of customers were confident about Chip and PIN
  
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  62% of companies found that Chip and PIN transaction times were marginally faster
  
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  71.7% of retailers found that the Chip and PIN project was ‘very easy’ or ‘quite easy’ to implement compared with other IT projects
  

UK Chip and PIN Report

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  77% of consumers liked using Chip & PIN; 93% found using Chip & PIN was easier than signing and 85% found that using Chip & PIN was faster than signature. Source: “Attitudes to Card Fraud”, APACS 2006.
  
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  Leonard Cheshire, found that more than half of those surveyed (1000 surveyed) had problems using Chip & PIN machines
  

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  More than half of disabled people surveyed (54 per cent) had problems using Chip and PIN machines
  
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  More than a third (35 per cent) of disabled people would prefer to return to their old signature cards
  

Retailers, and Issuers Perspectives

contactless debit/credit users

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  9% of population are contactless payments users
  
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  Awareness has grown: 15% in 2006 to 25% in 2008
  
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  Users like contactless: 63% believe contactless is faster, 56% believe contactless easier than magstripe
  
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  68% of contactless users believe contactless is at least as secure as magstripe debit/credit w/signature
  
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  Safety concerns among unlikely users has decreased since 2006
  
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  Safety concerns are about the same as other payment types for contactless users (46%) Pin debit = 57%, Sig debit/credit = 54%, Check = 48%, Contactless = 46%
  

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  NFC-enabled handset readiness very much depends on consumers’ satisfaction that the technology meets key criteria and concerns
  

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  Report estimates that total contactless credit and debit cards in U.S. circulation will reach 109 million by 2011.
  
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  Meanwhile, the number of contactless transactions, nearly 777 million in 2006, is expected to reach 2.2 billion by 2011.
  

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  92% think the technology is fast and easy to use.
  
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  Over 22% making payments with their contactless cards more than six times per month.
  
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  Contactless card users are keen on mobile payments. The research found 43% are likely to use a handset as a mobile wallet, compared to just 19% of people who don't use contactless cards.
  
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  Nearly half - 47% - of contactless card owners would even switch carriers in order to make mobile payments.
  

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  Retail purchases with a mobile phone were particularly well received, as participants found Philips NFC technology and Visa contactless payments easy to understand, convenient and fast.
  

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  Customers in the UK and the US state they are more satisfied with retail sites last year than in 2008; approval has risen by 6.5% in the UK to 71 points, while in the US it has improved to 79 points
  
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  There is also a marked difference in the performance of pure play online retailers vs. store based competitors. On average, those who only sold products & services online scored an extra 4 satisfaction points
  

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  The result of this study shows that both target groups had approximately same problems with the interface; however, these problems are more severe for the older groups.
  
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  The common problems which both groups have with the interface are being timed out by the system, failing to enter password for card, failing to enter required password for e-purse
  

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  ?
  

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  ?
  

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  A benchmarking study earlier this year showed that more than 70 percent of respondents have adopted using self-checkout lanes inside stores
  

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  Sixty-one percent of US online adults are interested in scanning and paying for purchases using self-checkout at places like the grocery store. Other retailers are also likely to benefit from self-service tools: 74% of consumers who have used an in-store kiosk report that these tools are "useful."
  

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  Multiple
  

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  New research reveals 60% of UK consumers believe mobile tickets are more convenient and easier to use than standard printed tickets
  

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  Plastic cards: If you live in the South East you are most likely to have a plastic card (97%), whereas if you live in the West Midlands you are least likely to have one (86%).
  
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  Phone or internet banking: If you live in the South East you are most likely to use phone or internet banking (59 per cent), whilst if you are in the North East you are least likely to (46%).
  
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  Cash: Adults in East Anglia make the lowest number of cash machine withdrawals (51 per person annually).
  
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  Cheque usage:  Fewer Scots write cheques* than in any other region (20% compared to the average for Britain of 31%), whilst Londoners depend on cheques the most (39%). The national average of people using cheques regularly fell by 6% between 2008 and 2009.
  

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  32.5 million adults purchased goods and services over the internet, equating to 65% of the population.
  
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  538 million card payments were made online with spend of £41.2 billion. Of these payments, 48% were made using debit cards and 52% using credit or charge cards.
  
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  The average values of online debit card and credit or charge card
  transactions were £74 and £79 respectively.
  

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  Of the UK’s five most prominent supermarkets only one has a website which meets the basic accessibility needs of disabled customers
  

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  The determinants of online shopping acceptance differ among product or service types.
  
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  Additionally, personal innovativeness of information technology (PIIT), perceived Web security, personal privacy concerns, and product involvement can influence consumer acceptance of online shopping, but their influence varies according to product types.
  

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  Consumer perceptions of usefulness and attitude toward e-shopping influence intention to shop online, while perceived ease of use does not influence attitude toward e-shopping
  

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  Extensive survey of extant related studies and synthesized their findings into a reference model called OSAM (Online Shopping Acceptance Model) to explain consumer acceptance of online shopping