This post was guest written by Gregor Rankin, Marketing Manager Northern Europe, Ingenico

Datamonitor’s recent research which found that card issuers other than Barclaycard and retailers have been slow to invest in contactless technology, puts the spotlight once again on this new form of payment and whether it will be a case of the emperor’s new clothes.

Whilst uptake has been slower for smaller retailers, it has been used to great success in a number of retailers, who have greatly benefited from contactless’ queue-busting benefits. Chains such as Pret A Manger, EAT and Caffe Nero have implemented the technology to great success. These early adopters have experienced an increased average spend of up to 33 per cent, in addition to substantially faster transaction times and higher footfall, which has shown that there are substantial benefits to be gained. With nearly 80 per cent of all transactions under £10, outlets such as these where quick turnarounds are essential to the business, will be a key proving ground for contactless.

The key on both sides of the transaction is education. Retailers need to be further educated about the benefits, and what contactless technology can do for their business. With research by US firm CVS showing that a contactless payment can be completed in only 12.5 seconds, compared to cash and chip and PIN transactions taking an average of 34 and 27 seconds respectively, the opportunity for queue-busting is huge. In parallel to this, as long as both retailers and card issuers collaborate to help customers understand the benefits and how to use their cards, contactless transactions will spike.

The recent announcement that contactless technology will be increasingly used at festivals and similar events, will increase consumer exposure to the technology and the convenience it brings - after all, who wants to carry pockets of change around at Glastonbury?