Industry Research Reports and Market Analysis at MindBranch.com
  

Contactless Payments: New Merchant Data Reveals Opportunities and Threats for Bankcard Issuers

Product Type: Market Research Report
Published by: Javelin Strategy & Research
Published: March 2006
Product Code: R3424-1
Description
Overview

The key to growth in contactless and other point-of-sale enhancements lies in understanding the attitudes and behaviors of merchants and the enhancements they are considering. This report is based on a December 2005 survey of over 900 merchants of various sizes in seven different industry categories. The report is designed to help companies derive more value and efficiency in contactless payment implementations, through better understanding of specific implications of merchant attitudes.

Primary Questions
  • What differentiates merchants who are considering contactless acceptance?
  • What are specific opportunities and threats for issuers implementing contactless programs?
  • How can issuers work with merchants to drive contactless acceptance?
Major Findings

Merchants could use contactless payments technology to more easily drive private-label card programs, usurping bankcard transaction volume. Issuers must integrate merchant loyalty pro-grams into contactless acceptance campaigns, both to avoid disintermediation and to make the business case for contactless technology acceptance. Merchants considering contactless pay-ments view cash transactions and handling cash as expensive, and seek to convert these transactions to cards.

Audience: Card issuers, merchants, payment networks
Table of Contents

Overview




Findings and Analysis Related to Contactless Payments




Private Label Cards Key to Driving Revenue Among Merchants Considering Contactless




Contactless Payment Adoption Is Hindered by Perceived Cost of Credit Cards




Engage Merchants in the Spectrum of Loyalty for Contactless Success




Table of Figures

Figure 1 Enhancements to Point of Sale, Method of Payment

Figure 2 Enhancements to Point of Sale, Top Three Most Expensive Payment Options

Figure 3 Addressing Merchant Concerns Related to Contactless Payments
Ordering and More Information
Price and Delivery Options


MindBranch has been the leading provider of industry and investment research from more than 550 independent research firms since 1992. With over 90,000 market research reports, MindBranch is your trusted source of competitive business intelligence.