A Chip Off the Old Block

Currently banks are handing out these credit card and debit cards with a chip on it that is supposed to be a safer way for customers to pay for their items. Goodbye to the regular swipe, and hello to insert chip here. The downside to this new safe feature is the fact that at the register customers wait an extra 15-20 seconds to be sure that the transaction is complete. The other downside to using the chip is the awful noise that is made when the chip can either not be read or the transaction isn’t processing correctly. Because credit cards are still a main form of payment, customers put up with these little obscenities due to the fact that they want to get their items and be on their way, even if they are annoyed after the process is completed. However, these chips just may be the last straw for consumers to finally make the switch to fully using mobile wallets.

In the article below PAYTOO is mentioned along with other mobile wallets as to why they will be great to use in the near future.

“What a shock to hear a customer ask a cashier: do you take AndroidPay, ApplePay or Paytoo Wallet? But…it is a fact. Users research more than ever the technology that will empower their lives and add convenience and fun. Credit cards still are the most used form of payment as opposed to mobile payment systems such as those fromPaytoo, Apple and Samsung.

What about credit cards make them a more preferred method of payment? Ease of use and maybe the trust factor? Trustev (co-founded by Pat Phelan) surveyed 2000 smartphone owners, 50 % with phones able to use Apply Pay and the 50 % of those that could use Samsung Pay. Apple Pay users were asked why do they still use credit cards? A whopping 85 % of those consumers responded that it is easier to pay at “brick and mortar” retail locations with a credit card. Easier!

Just 21 % of smart phone owners that could use Apple Pay have even tried it, and 14 % of  those that could use Samsung Pay have tried it. The age of those who have used either range evenly from 18 to 65!

More Samsung Pay users take advantage of the service more frequently than Apple Pay users, according to the Trustev survey.

Those who have used Apple Pay, responded with the following reasons. About 41 % love the convenience. Another 25 % just feel really cool using it. 23 % feel that it is more secure than using a credit card. Another 10 % said that with their smart phone and Apple Pay, they can leave their physical wallet home.

About 40 % of Samsung phone owners who use Samsung Pay do it for the convenience. An additional 19 % feel it is cool to use. Then, 16 % like the extra security, and 18 % like not having to carry a physical wallet around.

But maybe the excruciating, long process of payment via chip credit card will push people to more fully embrace check out with mobile payment? In the past, people swiped credit cards, but the new cards with a chip must be inserted and then, all will wait for anywhere from 5 – 10 seconds. Plus, people do not like the negative sounds heard when inserting the card and whenbeing pinged to remove the card.

Chuck Martin, a writer at the IoT Daily at Media Post, notes, “If the move to chip card payments doesn’t push Apple Pay, Samsung Pay and others along, it could be back to mobile payments glacier growth mode.”

What he said! (Don’t miss Africa Com 2015 November 17 – 19 in Cape Town, South Africa where participants will be happily inundated with mobile payment as well as other IP communications and technologies’ business development opportunities.)

Written by Muneeb Iqbal and edited by Suzanne Bowen”

 

http://www.techistan.us/chip-card-wait-boosts-mobile-pay-use/

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