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A New Report from Aite Group |
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Boston, MA, January 30, 2008
– A new report from Aite Group, LLC looks at the viability of contactless payments as an alternative to cash and traditional credit cards in the
United States. It evaluates the progress that has been made and considers the various stumbling blocks that have been encountered thus far. It also
speculates what must be done for broad acceptance of this means of payment.
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While early pilots for contactless payment cards indicated a significant value proposition for issuers,
merchants and consumers alike, cash remains the dominant form of payment transactions in the United States. This is attributable largely to
merchant trepidation of interchange costs on low-value transactions. Still, card networks have provided little incentive for merchants to
implement contactless payment technology, and have failed to remove the financial barriers that make accepting contactless payments prohibitive to merchants.
"It is widely accepted that a strategy of proliferation, even at a loss, is key to gaining traction for contactless payments," says
Nick Holland, senior analyst with Aite Group and author of this
report. "A solution would be for card networks and issuers to provide a contactless-specific category of interchange and fees for merchants. Once
uptake levels have reached critical mass and contactless payments are entrenched, fee structure can be altered to afford networks and issuers greater
opportunity for revenue generation."
This 32-page Impact Report contains 20 Figures. Clients of Aite Group's Retail Banking service can download the report
by clicking on the icon to the right.
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To purchase this report or
for additional information,
please contact:
Aite Group Sales
Tel: +1.617.338.6050
sales@aitegroup.com |
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