Nearly half (49%) of US consumers carry US$20 or less in their wallet, and 86% of consumers say they want to use cash less often than they currently do, according to a recent MasterCard consumer payment survey.
"Technology has led consumers to expect more convenience in their everyday life and MasterCard's challenge is to enable the most convenient payments," said Art Kranzley, chief e-business officer for MasterCard International. This article is copyright 2003 UsingRFID.com.
"Our key learning from these trials will allow us to better focus our deployment efforts, leading to broader availability of MasterCard PayPass in the U.S. market and around the world.
PayPass trial results
Following its PayPass contactless payment trials in Orlando, Florida and Dallas, Texas, MasterCard has invaluable insight into the tangible impact contactless payments can have on how consumers pay for daily purchases, and the concrete benefits retailers can gain from streamlined transactions.
More than 16,000 cardholders and over 60 retail locations participated in the nine month Orlando trial of PayPass. Trial results indicate that consumers find PayPass to be simple, quick and convenient. PayPass cardholders value the added security they get from retaining possession of their card while paying. Consumers also like the convenience of not carrying cash for everyday purchases, and not having to go to the ATM as often.
Earlier in 2003, MasterCard began working with Nokia to incorporate MasterCard PayPass into mobile phones. A Nokia market trial currently taking place with retailers in the Dallas, Texas area allows consumers to tap or wave their phone to make payments simpler.
Initial results from the PayPass trial in Dallas reinforce speed and convenience as top perceived benefits. The average PayPass payment made using a mobile phone was six seconds faster than using a card, due to the reduction of 'fumble time', and PayPass payments matched nearest-bill payments as one of the quickest ways to pay in store.
A recent US telephone survey commissioned by MasterCard examined consumer payment trends and preferences, and found that nearly 40% of US adults carry less cash with them compared with 5 years ago. Some 26% say they carry 'a lot less' cash. The survey results are in line with 2002 studies that showed that 53% of consumers would use a contactless payment technology such as PayPass to replace cash payments if their banks offered it to them.