Retailers reluctant to add contactless payment could lose sales

Barclaycard has found that retailers could be at risk of losing sales this Christmas due to their reluctance to introduce contactless payment at the checkout, as seasonal spending using contactless payment is expected to be almost three times higher this year than last.

Its research found that just one in three retailers (34 percent) currently accept contactless payment, despite this now being the preferred payment method for almost half (48 percent) of consumers.

Year-on-year increase in the rise of contactless transactions is anticipated to hit 159 percent by the end of 2015. However, retailers who would not consider adopting contactless payments cited reasons such as it not being necessary (36 percent) or not believing it has any benefits (29 percent). Whereas 45 percent of shoppers think all retailers should now accept ‘touch and go’ payments and 19 percent feel annoyed if they can’t pay using the technology, which could result in retailers losing sales.

Retailers who do accept contactless payments say it helps them to keep up with their competitors (85 percent) and that it offers a benefit to their customers who find contactless more convenient (79 percent).

Tami Hargreaves, commercial director, digital consumer payments at Barclaycard, said: “Brits are renowned for being fast adopters of new technologies that make their lives easier; you only need to look at the fact that contactless spending has tripled in the last year to see that.

“Our data indicates that consumer appetite for new ways to pay is only set to continue, particularly with the upcoming launch of high-value payments. There is still work to be done, however, to encourage retailers to see the benefits of accepting contactless and new and emerging payment types – a move which in an increasingly competitive marketplace is vital to help businesses attract new customers and retain existing ones.”