Barclaycard today reminded us in its press release that it is 10 years ago since chip and PIN services became available. The drive towards faster payments automation was driven by 2 factors - to decrease fraud in the card industry and to improve the Customer Experience.
Obviously since then we have also seen the introduction of contactless payments - with Barclaycard customers now making more contactless payments in a single month than the entire 2013.
This drive to deliver a better customer experience has also seen major advances in the mobile banking apps available - making it easier for customers to check balances, view transaction history and make payments from their phone.
So what next for the payments industry? Well Barclaycard says only 34% of its merchants accept contactless payments with a further 17% looking to start using contactless soon. That still only equates to 51%. And when you consider that 19% of its customers feel annoyed if they cant use contactless (and therefore might look to take their business elsewhere) surely the other 49% of merchants who currently don't accept contactless should be looking to adopt this solution very quickly. A poor customer experience will end up with customers voting with their feet - and wallet.
“The payments industry is continuing to advance at such lightning pace that it’s easy to forget the days of magnetic stripe cards and the clunky carbon copy machines,” says Tami Hargreaves, Commercial Director, Digital Consumer Payments at Barclaycard. “While 10 years ago Chip and PIN was seen as revolutionary for speeding up the transaction process, the recent rise in contactless has made buying and selling even faster, making it a win-win for both shoppers and retailers.” The future is mobile Contactless payments have lower processing costs than cash and a faster transaction process than Chip and PIN. Matthew Haines, VP Contactless Business Manager, Digital Consumer Payments at Barclaycard, says it is a “no brainer” to promote them to every consumer spending up to £30. That’s especially true considering that 19% of people feel annoyed if they can’t pay by contactless.