New ways to pay: Consumers embrace contactless cards while eschewing mobile payments.

What’s up with mobile payments? They’re the epitome of convenience … and yet most people haven’t taken the plunge.

It’s not as if major retail establishments haven’t begun offering mobile payment capabilities. Apple Pay is now available at three-fourths of the top 100 merchants in the United States (and at two-thirds of all U.S. retail locations overall.)  The stats for Google (Android) Pay are much the same.

But just because the capability is available doesn’t mean that people will start using it. Juniper Research recently analyzed the payment behaviors of consumers in the United States and UK.  It found that just 14% are using mobile payments for in-store purchases.

And even before mobile payments have had much chance to get out of the starting gate, another payment option — contactless credit cards — appears to steal their thunder.

Contactless cards act very similar to the way a mobile device would — by simply tapping a terminal at checkout.

Actually, contactless technology isn’t exactly new; MasterCard introduced cards more than a decade ago, and a number of transit authorities like the Chicago and London subway systems were early adopters.

But a critical mass has now been achieved, and market consulting firm ABI Research projects that by 2022, 2.3 billion contactless cards will be issued annually. Companies such as Amex and Capital One are already in it in a big way, and Chase started sending out contactless cards towards the end of 2018.

For consumers, the “tap-and-go” process of these cards takes only a few seconds — in other words, far faster than EMV chip cards that are the most prevalent current practice. Although a few observers disagree, it’s generally believed that contactless cards are nearly as safe to use as chip cards.

Accordingly, the vast majority of card issuers have zero-liability guarantees against fraud, figuring that the faster speed at checkout is worth it to consumers and vendors when weighed against the marginally higher security risk.

What are your preferred payment practices … and why?

QR Codes Live!

In marketing, QR codes have been the butt of jokes for years. The funky little splotches that showed up in advertising on everything from magazines to transit buses were supposed to revolutionize the way people find out information about products and services.

Except that … QR codes never lived up to the hype.

While a few advertisers stuck with QR codes doggedly, for the most part we saw fewer and fewer of them after their first initial years of splash.

But now, QR codes are making a comeback. It turns out that they’ve become central to mobile marketing tactics.

We’re talking about QR couponing, which is exploding.  Newly published estimates by Juniper Research, a digital marketing consulting firm, show that nearly 1.3 billion coded coupons were redeemed via mobile devices in 2017.

Moreover, Juniper is forecasting that the number of coupons with QR codes being redeemed via mobile devices will continue strong at least through 2022.

A big reason for the sharp increase in use is built-in QR functionality on smartphones – led by Apple which has begun including QR reader functionality as part of the camera application on its new iPhones.

This action takes away a huge barrier that once confronted users. The lack of in-built readers meant that consumers had to download a separate QR code scanner app.

We know from experience that one more action step like that is often the difference between market adoption and market avoidance.

But with that hurdle out of the way, major retailers are starting to take advantage of the more favorable playing field by finding more uses of QR code technology. Target for one has announced a new Q code-based payments system to scan offers directly to their device-stored payment cards, which can be scanned at checkout for instant payment.

Expect similar activity in loyalty cards, making their redemption easier for everyone.

The newly revived fortunes of QR codes remind us that sometimes there are second acts for MarComm tactics and technology – and maybe it happens more often than we expect.