While U.S. merchants and consumers believe in quick transactions at the point of sale, a Hanover Research survey commissioned by payments tech companies Ingenico and FreedomPay this month suggests consumers have lingering questions about the security of contactless payments.

The study queried 350 merchants and 1,350 consumers in the U.S. on their perceptions regarding payment methods in use today, observing that “consumers, especially older shoppers, remain afraid to use contactless cards and digital wallets in particular, and current adoption levels are lower compared to other forms of payment.”

Hanover Research found that 63% of merchants and consumers polled don’t trust the security of contactless credit and debit cards, creating awkward situations for merchants even when point-of-sale tools are contactless enabled.

“Many tech-savvy buyers are willing and able to go contactless, and most merchants have the capabilities, but consumers aren’t always able to figure out exactly which retailers accept contactless cards or digital wallets,” the study stated.

Meanwhile, the study reported that consumers are largely happy with legacy payment methods, with credit and debit cards emerging at the top of consumer preferences.

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The shift toward contactless payment methods, the report concluded, may be a step younger generations will be most comfortable taking. Illustrative of their openness to contactless payments, Hanover research found that 65% of Gen Z consumers — those born in 1995 and later — viewed contactless payments as a “must have,” compared to 47% of millennials, 43% of Gen X consumers and 22% of baby boomers.

Ultimately, it’s on retailers to be proactive about informing customers on the multitude of digital and contactless payment capabilities available, and support them in their efforts to change long-held habits and behaviors, the study argued.

“By offering education about non-cash payment options, contactless and digital wallets especially, retailers can deliver what consumers of every age most want out of the transaction: ease of use, speed, and security,” Hanover Research observed. “Those who sit back and simply hope that consumers will figure it out risk being left behind and leaving money on the table.”

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