A research study conducted by Mastercard named 'The Mastercard Impact of Innovation study' has revealed that not only are Brits using contactless payments and cards more than cash in retail stores but also using smartphones to make purchases online more than any other medium. This way, believes Mastercard, smartphones are becoming increasingly essential for managing payment card functions, controlling bank accounts and authenticating transactions.
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“The British are enjoying a very positive experience with technology, but clearly there is an appetite for even more. The mobile phone is doing what nothing else has managed to do since the launch of the credit card 50 years ago. We cannot leave home without these items and now the card is moving onto the phone. Digital innovation is being driven by a diversity of services like Facebook and Uber, and people will increasingly want to use their devices for payments,” says Dr. Carsten Sørensen, a digital innovation professor at the London School of Economics.
The research also revealed that three in every four Brits enjoy online shopping and have never had a negative experience and that 82% of all Brits are either shopping online or using e-commerce services. This way, cash transactions are being relegated and many soon be history given how people have embraced smartphone technologies in a short period of time. Apple Pay has been live in the UK for over a year and a half but with the arrival of Android Pay this year, contactless payments have jumped and are set to become the default mode of transactions sooner than later.
According to the study, 63% of Brits agree that while modern technologies and innovation are beneficial for the society, 76% feel that the effects of technology should be felt by everyone rather than the privileged few. With a majority of the British public now using smartphones instead of feature phones, financial inclusion via gadgets will be a lot more easier and faster than any other means.
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“One of the key drivers to digital and financial inclusion is the role of the mobile. Every member of the population should have access to basic financial products and digital connectivity, and so innovation must ensure that technology creates greater opportunities rather than widening the gap,” said Elliott Goldenberg, head of digital payments for Mastercard UK & Ireland.
Mactercard has partnerships with both Apple Pay and Android Pay and along with Visa, is instrumental in enabling contactless payments across the country. Mastercard has also been researching technologies to make contactless payment quicker and easier for consumers. Last year, it came to light that Mastercard was working on a new biometric technology named ID Check which could let you to make payments at stores just by clicking your selfie. The technology enables MasterCard to link an image of your face with your account so that the facial recognition software will realise it's you before clearing a payment. MasterCard claims that the new technology is more secure than password-based authentication processes.