Friction and frustration in payments – the state of UK contactless

There’s been a lot of comment recently about the success of contactless payments in the UK. I’m a big fan of contactless payments, especially when they’re secured and tracked using Apple Pay. Contactless takes some of the friction out of paying and delivers a simpler consumer experience. However despite the growth in contactless, the reality is a myriad of inconsistencies across retailers, especially where contactless involves mobile handset payments like Apple Pay. My recent research indicates that consumers are still presented with a confusing and inconsistent experience when using contactless payments.

Amex Apple PayFor the average consumer it’s impossible to know which contactless payment methods work where. For example, Waitrose supports American Express via card contactless, Apple Pay handset and Apple Pay Watch. However go to Boots and Amex card contactless works fine but neither Apple Pay handset or Watch works – presumably an acquirer or hardware issue. Pret a Manger Amex card contactless and Apple Pay handset are fine but Watch fails. Elsewhere, some stores accept Amex Chip and PIN but not contactless.

Apple Pay transactions do not need to be limited by the £30 transaction limit as the handset is covered by Consumer Device Cardholder Verification Method. However the only evidence in store I’ve seen where this limit does not apply is in Apple’s own stores. To prove this I paid for a MacBook Pro with my Apple Watch last year (an expensive experiment!). Other stores that have lifted the limit seem to keep it a closely guarded secret!

To further add to consumer confusion, Tesco has now launched its own handset based payment method PayQwiq which uses an app generated QR code to pay with a pre-loaded credit or debit card. I really don’t want retailer specific payment apps as well as generic ones – this just adds to payment friction.

Payment methods must be ubiquitous and consumers not be expected to think about what will and will not work. The payment industry must work to create consistency across retailers so consumers can pay with certainty.

Originally published on Disruptive Views.