Out-Law / Your Daily Need-To-Know

Study reveals consumer attitudes to digital payment methods in retail market

09 Sep 2015, 11:16 am

Retailers that support innovative ways of payment are winning praise from consumers on social media channels, according to new research.

MasterCard said a study it had conducted in partnership with PRIME Research found that consumers have been active in praising the convenience of contactless and mobile payment services offered by retailers.

The "social listening study" looked at 1.6 million "unprompted online conversations" in 61 countries, it said.

"Consumers discussed extensively their desire for retailers to integrate new payment systems, with conversations about fashion being most prominent in terms of sector," MasterCard said. "Fashion focussed shoppers were the most keen to shout about retailers who accept new methods of payment, such as contactless acceptance and mobile payment capabilities."

"Which retailers do and do not accept newer forms of payment" is the second most common topic consumer discuss when talking about retail and shopping, MasterCard said. The "most vociferously and positively discussed topic" consumers post relates to the rewards and benefits they obtain from retailers for using certain payment services, it said. MasterCard said its research also revealed that most online conversations about retail and shopping take place on Twitter.

"The wave of social engagement we see every time new payment innovations are rolled out truly reflects the demand and desire for new and more convenient ways to pay," Carlos Menendez, executive director for international markets at MasterCard, said. "It also shows that payments have really moved into the heart of the shopping experience – causing frustration when not accepted and engagement when fast, easy and personal.”

In Australia, the Parliamentary Joint Committee on Law Enforcement has recommended (106-page / 572KB PDF) that contactless payment features on payment cards should not be automatically available to consumers.

The committee said that financial institutions that issue debit and credit cards should "create an 'opt in' function that requires customers to consent to contactless payment technology features being activated on their cards". This measure, it said, would help to address the risk of fraud and other financial crimes.