Consumers Prefer Chip Cards 5X More Than Magnetic Strip Cards
It has been nearly five years since America began transitioning to chip credit and debit cards. Almost 100% of card-based transactions now use EMV technology, and research shows that Americans have finally warmed up to ‘dipping’ their payment cards.
According to a report from Ingenico Group and FreedomPay, 54% of U.S. consumers choose inserting a chip card as their preferred payment method. This is significantly more than the 11% who prefer swiping a magnetic strip card.
Contactless payments are increasing in popularity, though they have not taken off just yet. Only 7% of respondents said they preferred to tap their contactless cards, and 4% chose digital wallets for their payment of choice. Nevertheless, 72% of shoppers said contactless methods were easy to learn, and 74% said they were convenient to use.
The research found that 84% of businesses currently accept contactless payments, but 63% of consumers do not know they can tap-to-pay. This could be contributing to the slow growth.
Several financial institutions and card issuers have started the transition to contactless cards. These cards can be inserted or tapped for payment, as long as the card reader is contactless compatible. Up to 70% of debit cards are expected to have contactless capabilities by the end of this year.