WIRELESS AND MOBILE NEWS

The Smart Card Alliance is saying that when consumers try contactless payments they like.

New research commissioned by the Smart Card Alliance showed nine percent of the U.S. population now has a contactless credit or debit card. Last year the number of open network contactless cards in circulation reached 35 million in 2007, nearly doubling from 19 million in 2006, according to another study from JupiterResearch.

The Alliance survey showed 92 percent of contactless users thought it was both fast and easy.

In general these users had positive experiences at merchants too, reporting that 85 percent of cashiers knew how to accept contactless, and 84 percent saw contactless acceptance marks at the point-of-sale. 

Contactless users are very positive on mobile payments as well. Current contactless users are twice as likely to use a mobile wallet as non-users. The Alliance research showed 43 percent of contactless users were likely to use a mobile device as a mobile wallet, compared to 19 percent of the non-users. Consumers are even ready to switch carriers to get what they want, with 47 percent of contactless users saying that they would switch mobile carriers to gain mobile payments.

Contactless users are also paying with their contactless cards or fobs frequently, with over 22 percent using contactless payment more than six times per month.

The Alliance survey, conducted in 2008 by Javelin Strategy and Research, included two pools of respondents: 1,500 respondents that are representative of the U.S. online population, which is 73 percent of the U.S. population, and 500 contactless credit/debit card users.

Leading contactless issuers have also made positive reports.

Merchant acceptance of contactless is a growing. There are now 75,000 U.S. merchant locations accepting contactless payment, including taxi cabs and transit operators, according to David Robertson, publisher of The Nilson Report, a trade newsletter that tracks the payment industry.

As to why contactless payment is popular with consumers, a busy professional woman working in New York City summed it up nicely in this comment. "When grocery shopping, I never like fumbling for cash, having to put change back into my wallet, then trying to exit the store with my hands full of groceries. All this with other impatient customers behind me in line. Using my contactless card is super convenient and fun. It's faster and easier than swiping a card, and I definitely prefer to use contactless where I can," she said, requesting anonymity.