Why Contactless Cards Aren’t Taking Off In The UK

Benjamin Ensor

The other day, Smile*, one of the banks I have an account with, sent me a new contactless card.

The contactless symbolThe striking thing about this otherwise ordinary event was that the bank didn’t mention that it was a contactless card. I know it’s a contactless card because it has the contactless symbol on it. But nothing in the letter the bank sent with the card so much as mentioned the new contactless functionality. Logically, one of the following must be true:

  • Uncharitably, it could just be that the left hand doesn’t know what the right hand is doing, and the product team forgot to tell the marketing team it was doing anything new.**
  • Possibly, some slip meant that my envelope didn’t contain any marketing. But there’s no mention of contactless cards on the bank’s website either.
  • Alternatively, the bank simply reckons that the benefits of promoting the contactless functionality are so marginal that it’s not even worth the effort of changing its standard letter (which promotes card protection insurance in extensive detail).
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Kick Out The Tills, CI Professionals

Rob Brosnan

Mike Brown, CIO of Lowe’s, in an interview with Bloomberg on the purchase of 42,000 iPhones as point of sale (POS) devices:

Forget about the competition, we are playing catch-up with the customer psyche.

CI professionals need to follow Brown’s lead. A substitution of tablets and smartphones for cash registers promises both to improve customer experience and to transform face-to-face customer interactions into a stream of behavioral and contextual data. The benefits of digitizing human channels through consumer devices include:

  • Adding clickstream analysis to human interactions. As sales associates interact with customers, their devices can relay clickstream data back to the company’s data warehouse. For example, Pfizer’s tablet program allows it to track doctors’ content consumption patterns during sales presentations. Using interaction management, firms can test real-time content variations to optimize the sales process.
  • Expanding customer data integration options. By using the phones for mobile POS, employees will pull in customer identity. Firms can also add new methods for data capture – such as Bump-style, near-field communications – into its consumer and enterprise apps. As sales associates transfer a shopping list to the customer’s phone, the device can capture and associate customer identifiers and contextual information with the interaction.
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