Consumers Prefer Chip Cards 5X More Than Magnetic Strip Cards

Consumers Prefer Chip Cards 5X More Than Magnetic Strip Cards

January 13, 2020         Written By John H. Oldshue

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.



The information contained within this article was accurate as of January 13, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.


john-oldshue

About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
View all posts by John H. Oldshue
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