News & Views - Savantor

Contactless growth forecastes

Monday, 30 June 2008

If the APACS forecast that there will be five million contactless cards in circulation and 100,000 contactless merchant terminals in place by the end of this year is to be realized then we had better get a move on. There has been little communication outside of the London launch in September 2007, and apparently 88% of UK cardholders haven't even heard of contactless payment cards. The roll out needs an injection of new life so that people can get used to the technology and the financial services industry needs to dispel some popular myths around security and fraud.

Over three quarters of UK citizens fear the introduction of contactless payment systems will leave them exposed to fraud, according to a survey commissioned by life assistance firm CPP. The poll of 2200 people conducted by TickBox found 77% of respondents feel that the roll out of contactless payment cards will make it easier for criminals to spend money on lost and stolen cards. Nearly half of those surveyed fear contactless cards will lead to increased crime levels, with 34% concerned about fraudsters hacking into personal details.

However, there is some good news in that 49% of respondents believe the technology will result in shorter queues and the same percentage liked the idea of not carrying cash. Nearly a quarter (23%) of those polled also felt contactless cards gave them more control as they don't leave the cardholder's hands at the point-of-sale. With the credit crunch hitting people's pockets, 47% of those questioned were concerned about keeping an eye on their expenditure while 34% think they will actually spend more as a result of the added convenience and ease that these cards bring.

Allied to this, the adoption of NFC has also slowed due to integration and architecture challenges, such as lack of supporting infrastructure, technical standards, cooperation among value chain participants, and market misperceptions.

It may be that the credit crunch is distracting major players from investment in new technology to ‘concentrate on the knitting’ but if that is the case it can only be a temporary interruption. There may be too many companies involved in the NFC value chain, each with their own interest, roles and business models.

Now may be a good time for financial players to take a good look at internal efficiencies so that when the market recovers they are ready to take real advantage of the opportunities which will come with technologies such as contactless or NFC.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Payment Specialists

"Working close with Savantor's professionals over the years in the payment arena. I appreciate the skills and knowledge these guys have and will surely engage with them when opportunities arise. The current engagement with Savantor is full to satisfaction and beyond."

Idsert Walta, Head of Banking Categories - Nordea - Scandinavia

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - UK

Acquirer Strategy and Operating Model

"Savantor brought an effective blend of European acquirer market expertise and transaction processing solution design. Their experts quickly forged strong working relationships with our team. We enjoyed working with them to create our future acquirer strategy."

Mikko Hyttinen, SVP - Lending Services - OP-Pohjola Group - Finland

Expert Witness

"After searching extensively for the required industry expert in a complex litigation, Savantor was identified to have the necessary industry knowledge and expertise on a range of complex issues. Savantor provided clear advice and was able to quickly hone in on the key issues, but most importantly, generating pragmatic winnable answers."

Gavin Ingram, General Counsel & VP Strategic Planning - Global Blue - Asia Pacific

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Commercial Card Migration

"Execution at its best. We're delighted that this project has been truly outstanding and received an award from 'The Banker'. Savantor provided crucial expertise that helped us keep all our promises in terms of delivery. The scheduling, planning and control regime throughout was excellent."

Chris Mason, Director - Commercial Cards EMEA - Citi - UK

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Credit Card Launch

"Savantor's knowledge and experience were the key differentiators in selecting them and they contributed greatly to the success of the product launch and the effectiveness of the ongoing operational service."

Toine Schepers, Operations Director - Primeline - The Netherlands

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.