More Than 100 Million Americans Would Use Contactless Credit Cards To Buy Inexpensive Items

More Than 100 Million Americans Would Use Contactless Credit Cards To Buy Inexpensive Items

Survey Finds Young, High-Income Consumers Most Likely To Use New Technology

WALTHAM, Mass., July 19, 2006–More than 100 million Americans would use contactless cards to pay for inexpensive, everyday items such as fast food, convenience store items and transit fares, according to a comprehensive new survey released today. A large number of consumers would also use contactless cards to pay for parking, video games and vending items, the survey found.

The survey, conducted by Ipsos Insight and Peppercoin, was a scientific, random sample telephone survey of 1,001 Americans ages 18 and older and has a margin of error of plus or minus three percentage points.

“This research shows that consumers are open to embracing the convenience of contactless cards and many of them are willing to use them to buy everyday items,” said Matt Kleinschmit, vice president, Ipsos Insight. “And this is particularly true for younger Americans, reinforcing the long-term growth potential of contactless card technology and the payment card industry.”

Specific survey responses include:

  • Broad willingness to use contactless cards–More than 50 percent of respondents, which translates into more than 100 million Americans, would use contactless cards to buy gasoline, items from fast food restaurants or corporate cafeterias, or groceries. More than 40 percent would use contactless cards to pay for convenience store items and transit fares (subway and bus fares and tolls). Almost 40 percent would use contactless cards to buy coffee or pay for parking, and 30 percent (60 million Americans) would use contactless cards for video games or at a vending machine or kiosk.

  • Greater acceptance with young consumers–More than 50 percent of survey respondents between the ages of 18 and 24 indicated they would use contactless cards to buy a range of goods, including gas, groceries, fast food, coffee, convenience store items, transit fares and video games.

  • High income consumers more likely to use contactless cards–Consumers in households with incomes greater than $50,000 indicated they were more likely to use contactless cards than those with income less than $50,000.

  • Security and ease of use are top concerns–Concerns about security and ease of use are the two main obstacles facing contactless card acceptance. Depending on the specific market, between 13 and 22 percent of respondents indicated security concerns would keep them from using contactless cards. The data indicate a need for companies leading contactless roll-outs to educate consumers about the cards’ safety and how easy they are to use.

“Contactless payments represent a significant opportunity for the payments ecosystem. Consumers benefit from the increased convenience while merchants gain speed at the point of sale,” said Mark Friedman, president and CEO of Peppercoin. “In addition, when combined with Peppercoin’s Virtual Prepaid and Merchant Loyalty offerings, contactless payments encourage consumers to return more frequently and spend more when they do–translating into increased revenue for merchants.”

About Ipsos Insight

Ipsos Insight is a member of the Ipsos Group, a leading global survey-based market research company. As the company’s flagship marketing research division in the U.S., Ipsos Insight provides custom and tracking research to domestic clients as well as U.S.-based multinationals. Ipsos Insight specializes in research for the Consumer Products, Technology & Communications, Financial Services, and Health industries. Visit

About Peppercoin, Inc.

Peppercoin is a small payments technology company transforming routine card transactions into new revenue opportunities. Peppercoin’s platform accelerates the cash-to-card transition, getting customers to come back more often and spend more using the cards in their wallets–all while costing merchants less. Only Peppercoin provides a loyalty-ready PCI-compliant small payments suite for all payment models, including prepaid, subscription, and pay-as-you-go with Intelligent Aggregation. For more information, please visit