Study: One-in-five consumers say chip-enabled credit cards take too long
Among the concerns that consumers have about the new chip-enabled payment system, the fact that the cards take a longer time to process the payment leads the way, according to a new study released today by Harbortouch, a national point of sale (POS) system and merchant services provider.
Released a month after the October 1 EMV transition deadline, the survey of 5,000 U.S. adults offered insights into consumers’ sentiments around the new payment technology and what it means for brick-and-mortar retailers with the holiday shopping season nearly in full swing.
"On average, it takes between seven to 10 seconds to pay using a chip card versus two to three seconds to pay using a traditional swipe credit card," Jared Isaacman, founder & CEO of Harbortouch, said in a statement. "While seemingly small, during busy times like the holidays, these increased processing times could add up quickly. It's possible we'll see longer check-out lines or even cart abandonment by those unwilling to wait. Retailers could feel the pinch from lower in-store holiday sales or customers turning to their mobile devices to shop."
On top of customers’ concerns about the slower chip-enabled credit card transaction times, nearly 44 percent said they’d be open to purchasing goods in line instead of waiting to check out at a retail counter if it meant decreased waiting times, a la Apple’s retail philosophy.
Here’s a look at some of the other findings from the study:
- Only 21 percent of consumers have used an EMV card – The highest adoption rates of EMV cards are among respondents ages 25-34 years-old, also known as Millennials (25.3 percent).
- Majority of consumers say swipe credit cards are the quickest – When polled on the quickest form of electronic payment, 67 percent of people still believe that traditional swipe cards are the fastest method available.
- Speed trumps security – Nearly four times as many survey respondents are more worried about speedy processing times over chip card security or availability of EMV terminals.
"Consumer sentiment around chip-enabled credit card payments and convenience could pose a serious challenge for retailers this holiday shopping season," said Isaacman. "But there is the opportunity for them to get ahead of the issue by implementing 'line-busting' programs or even mobile payment options, which could help retailers cut back on wait times and long lines."