EMV Cardholders: Ready To Skip the Line

One way consumers deal with the frustration of waiting in long holiday-season checkout lines at stores is to complain about it. But survey results from merchant acquirer Harbortouch show that many consumers are now actually willing to do something about it.

Some 44.7% of consumers who reported having used an EMV chip card to make a point-of-sale purchase said they would buy goods in line instead of waiting to get to the checkout counter.

Though the October survey did not ask how they would do that—whether through line-busting by store employees or such methods as mobile payments or in-app payments—most of those who would are young. But, curiously, few are concerned about extra time at checkout brought on by EMV chip acceptance.

Of those between 25 and 34 years old, 56.8% would skip the line, followed by 18-to-24-year-olds, 54.2%, and 35-to-44-year-olds, 51.2%. Minorities of those above age 45 would opt for an expedited checkout, with only 22.3% of those 65 and older not content to wait in line.

The survey for Allentown, Pa.-based Harbortouch was based on a representative sample of 5,551 consumers who were first asked if they had used an EMV card for a purchase. Only those who responded yes, some 21.1%, were asked further questions.

The vast majority of that group, 75.6%, said they do not make mobile payments using a smart phone or smart watch. Of those who have, most are age 34 or younger, with 18-to-24-year-olds—38.7%—using the technology the most.

Those 25 to 34 years old had the next highest use at 34.9%, with decreasing use for successive age groups. Just 11.7% of those ages 55 to 64 use mobile payments.

Mobile-payments use at about 23% was surprisingly uniform across the West, Midwest, and South, but consumers in the Northeast showed a greater affinity for the method, with 33.4% having used mobile payments.

Part of the reason for the low adoption rate for mobile payments may be consumer perception that payments are faster when swiping a magnetic-stripe credit or debit card. Most respondents—67.4%—said that was the quickest way to pay, compared with 19.4% who cited EMV chip cards, and only 13.2% who said mobile payments.

The survey also found that of those consumers with concerns about using EMV chip cards, 18.2% cited the amount of time to make a transaction as a top concern, along with a lack of acceptance locations, 10.9%, and security, 4.9%. Most—66%—had no concerns about using an EMV payment card. Survey respondents all said they have chip cards.

Mobile payments usage may be low now, but 33.5% of consumers expect a variety of merchants will adopt mobile payments this holiday season, potentially increasing the locations they can tap their smart phones or smart watches. Only 14.4% do not expect retailers, restaurants, entertainment venues, grocery stores, or transportation providers to adopt mobile payments in the fourth quarter.

Earlier this year, Apple Inc. chief executive Tim Cook forecast the number of Apple Pay merchant locations would reach 1.5 million by Dec. 31. Google Inc., in September, said 1 million merchant locations accepted its Android Pay mobile-payment service.

—Kevin Woodward