Cashless payments on the rise but security concerns remain, according to new Worldpay from FIS survey

The decline in the use of cash has led to a rise in security concerns over cashless payments, according to new survey results by Worldpay from FIS^®, a global leader in financial services technology.

The Generation Pay report highlights the differing payment trends and attitudes to finance across five generations around the globe. The report reveals that despite the increase in cashless payments, which have accelerated during the pandemic, many consumers still have significant security concerns about digital and contactless payments that need to be addressed. 

The research found that contactless payments are viewed as easier to use across all generations, with convenience being crucial to its popularity. However, almost half of those surveyed (47 percent) admitted to being worried about security when paying this way. Interestingly, 56 percent of respondents indicated they want retailers to reassure them about payment security before they pay. Despite these findings, contactless usage has continued to grow this year, now accounting for 56 percent of all debit card payments in the UK.

Worldpay data shows over £4 billion was spent through contactless payments in the UK in July compared to just over £2 billion in April.

“Consumer behaviour has shifted rapidly this year as a result of the pandemic bringing widespread change in the way people choose to pay and be paid. Our research highlights that whilst convenience and ease is top of mind when it comes to driving adoption, more needs to be done to reassure consumers about the security of smarter payments technologies.” said Pete Wickes, General Manager EMEA Enterprise, Worldpay from FIS. “As businesses move towards reinventing for the ‘new normal’, digital wallets with additional layers of security, such as biometric authentication, could hold the key to alleviating security concerns and help merchants win trust and loyalty with consumers.”

The Generation Pay findings reveal that 32 percent of millennials and 28 percent of Gen X consumers use digital wallets. However, with over half of those aged 55 and over indicating that they find it difficult to use mobile wallets to complete purchases, there will be a need to focus on accessibility and user experience to ensure that older consumers are not left behind.

Other interesting findings from the report show:

·         20 percent said they hadn’t been issued a contactless-enabled debit or credit card by their provider.

·         54 percent agree using digital/contactless payments makes it easier to take control of their spending.

·         60 percent of consumers are concerned about using cash to pay due to the pandemic.

·         A quarter now only shop in stores when they can use card or contactless payments.

·         32 percent of UK Gen Z (ages 18-23) are interested in paying with a microchip implanted in their hand.

You can access the full 2020 Generation Pay report here.