Contactless Technology

Syndicated Report Brochure Contactless Technology: Focus on Younger Consumers to Grow Adoption and Acceptance December 2006 Telephone: 925.225.9100 Fax: 925.225.9101 Address: 4309 Hacienda Dr., Suite 380 Pleasanton, CA 94588 Email: inquiry@javelinstrategy.com Web site: www.javelinstrategy.com Syndicated Report Brochure Contactless Technology: Focus on Younger Consumers to Grow Adoption and Acceptance Overview This report includes data-backed insight into the competitive challenges facing card issuers and payment networks, and in turn the opportunities for wireless carriers and other players regarding contactless technology implementations. Momentum for contactless payments has grown in the past year, with large card issuers and payment networks moving forward with product and technology rollouts. Analysis of consumer attitudes surrounding the technology will enable industry players—both merchants and issuers—to understand the evolution of contactless payment technology in the coming years. Primary Questions • • • • What are consumers’ concerns regarding contactless technology? Which demographic groups are more likely to adopt contactless technology and why? How can payment networks grow acceptance beyond small value transaction merchants? What are the trends—technology and otherwise—that can accelerate contactless adoption? Findings and Analysis While more rapid checkout provides some immediate market value for certain merchants, companies must search for all-important killer applications for widespread contactless technology adoption. Embedding contactless payments in cell phones represents an opportunity for mass consumer adoption and merchant acceptance. Greater availability of over-the-air (OTA) provisioning and other technology solutions that allow for download of payment information to phones will forge this path. But networks and issuers must be certain to continuously address and allay the consumer security concerns that have arisen and will continue to develop surrounding contactless technology. Consumers aged 18-24 show both a higher propensity to use contactless payments, greater concern with usability rather than security, and an elevated likelihood of using cell phones for payment. They are a prime target for this mass adoption. Audience: Author: Contributors: Editor: Card Issuers, Payment Networks, Wireless Network Operators, Payments Vendors, and Handset Manufacturers Bruce Cundiff, Senior Analyst James Van Dyke, President Mary T. Monahan, Editor and Analyst Publication date: December 2006 Price: Length: $950 ►10 pages ► 6 charts/graphs Telephone: 925.225.9100 Fax: 925.225.9101 Address: 4309 Hacienda Dr., Suite 380 Pleasanton, CA 94588 Email: inquiry@javelinstrategy.com Web site: www.javelinstrategy.com Syndicated Report Brochure Contactless Technology: Focus on Younger Consumers to Grow Adoption and Acceptance Table of Contents Overview.……………….………………………………………................................................. ………... Primary Questions……………………………………………………………………………………………. Findings & Analysis…………………………………………………………………..........……………....... Address Consumer Security Concerns—Both Perception and Reality—To Realize Widespread Adoption of Contacless Technology………………………………………………………………………... Focus on Younger Consumers: They Are More Likely to Use Contactless Payments, and More Concerned with Usability Than Security………………………………………………………………….... Integration of Contacless in Cell Phones and a Focus on Younger Consumers Will Drive Merchant Acceptance and Wider Consumer Adoption………………………………………………………………. Contactless, Mobile, and Youth: Recipe for Increased Spending?..................................................... Trends to Watch………………………………………………………………………………………………. Contactless Capabilities on Mobile Devices……………………………………………………….. Over-the-Air (OTA) Provisioning…………………………………………………………………….. Carrier and Financial Institution Interaction………………………………………………………… Merchant Adoption for More than Small Value Transactions…………………………………….. Appendix………………………………………………………………………………………………………. 1 1 1 2 3 4 5 6 6 6 6 6 7 Table of Figures Figure 1: Fear is the Primary Barrier to Adoption of Contactless Payments…………………………... Figure 2: Contactless Technology: Interests and Concerns by Age Group……………………………. Figure 3: Device Preferences for Contactless Payments………………………………………………... Figure 4: Typical Payment Forms by Age…………………………………………………………………. Figure 5: Likelihood of Usage of Contactless Products by Age Group Figure 6: Likelihood of Consumers Aged 18-24 to Adopt Contactless 2 3 4 5 7 8 Telephone: 925.225.9100 Fax: 925.225.9101 Address: 4309 Hacienda Dr., Suite 380 Pleasanton, CA 94588 Email: inquiry@javelinstrategy.com Web site: www.javelinstrategy.com Syndicated Report Brochure Contactless Technology: Focus on Younger Consumers to Grow Adoption and Acceptance Companies/Organizations Mentioned in Report 7-Eleven Giesecke & Devrient Paypal ViVOtech Additional Report Topics Carrier Versus Card Issuer Battle Cell Phone Payments Consumer Contactless Acceptance / Adoption Contactless Capabilities on Mobile Devices Contactless Security Merchant Contactless Acceptance / Adoption Mobile Wallet Over-the-Air (OTA) Provisioning PayPass Payment Functionality Quick Serve Restaurants (QSRs) Sample Pages Telephone: 925.225.9100 Fax: 925.225.9101 Address: 4309 Hacienda Dr., Suite 380 Pleasanton, CA 94588 Email: inquiry@javelinstrategy.com Web site: www.javelinstrategy.com Syndicated Report Brochure Health Savings Accounts: Focus on Transactions and Product Development Will Lead to Asset Growth Target Place Your Order as Follows: 1) Call us at 925 225 9100, x26 2) Email us at inquiry@javelinstrategy.com 3) Fax or Mail using the form below: Please send me the following report(s): Report Title Publication Date Price Name_____________________________________Title_________________ Organization__________________________ Division or group_______________ Email______________________Phone______________Fax_______________ Address___________________________________________________ Signature to confirm your order: Payment Method: _______________________________ [ ] Check Enclosed [ ] Invoice me Exp date: [ ] Payment card Visa, MC, AE or Disc. card #: Name on Card: _______________________ __/__ _____________________ Signature_____________________ For invoicing, provide PO number: ________________________________________ (Invoicing is available to financial institutions or publicly owned firms) Note: Reports are provided in electronic PDF form only. 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