Consumers in Thailand are ready to embrace the benefits of speed, convenience for small payments, and cash-free shopping that Visa contactless products provide, according to Visa’s research study entitled Contactless Consumer Research. The research was conducted to gauge the level of consumer interest and responsiveness to contactless payment product in Bangkok, prior to the launch of Visa contactless later this year.

Contactless payment is a new payment method in a form of chip-based technology that removes the need to physically swipe or insert a card into a payment reader. Via Radio Frequency (RF), a card reader can detect a contactless card by simply holding a card in front of a reader at a close range. Without leaving the hands of cardholders, this form of payment allows a faster, safer, and more convenient transaction, especially at places that require speedy payment such as fast food restaurants and convenience stores.

Visa Asia Pacific’s regional head of contactless Mr. Peter Manners said, “Contactless payment is another step of chip-based payment evolution that enables innovative payment services such as a mobile payment. Visa’s contactless product has been launched successfully in Malaysia, Taiwan, and Korea. There are currently 1.2 million Visa contactless cards in circulation in Asia Pacific that can be accepted at more than 11,300 terminals. It has been well-received by consumers in those markets as it provides consumers with greater control of their payments, convenience, and faster transactions. Thailand is one of our priority markets in Asia Pacific for introducing Visa contactless and we see a lot of opportunities and benefits this product can offer to our member financial institutions and consumers.”

According to the research findings, one in five Thai consumers are currently familiar with contactless payment cards. Only one in 10 have used a contactless payment card, mainly at convenience stores. Nearly two-thirds of those surveyed were interested in acquiring a Visa contactless payment card for the benefits of speed, convenience for small payments, and cash-free shopping. Interested consumers like key features of Visa contactless including zero liability protection (93 percent) and the capacity to track transactions (84 percent).

“Our research shows that although the current familiarity with contactless products in Thailand is still relatively low (one in five), more than half of Thai consumers surveyed are interested in using a contactless payment product, especially those who are under 30. The interest among younger male and female consumers appears to be equal. This indicates that Thailand is a high potential market for Visa contactless. Consumer education about the benefits of Visa contactless will help accelerate market growth,” said Mr. Manners.

Among consumers who are interested in using contactless cards, 80 percent will migrate their cash purchases to Visa contactless cards.

Consumers’ main concern in taking-up the product is security. However, with security reassurances, those not likely to take up the card would be more inclined to do so. Financial institutions such as banks and international card companies are perceived to be much more trustworthy as issuers of contactless payment products compared to general merchants.

Contactless Consumer Research was conducted in October 2006 with 500 respondents in Bangkok, aged 18 to 46 years who own a bank account. The quantitative survey was taken face-to-face with a minimum quota that 50 percent are Visa payment cardholders.

Visa International’s Country Manager for Thailand Mr. Somboon Krobteeranon said, “Since the launch of chip cards in 2004, chip card usage in Thailand has grown significantly. As of September 2006, over 800,000 chip cards were in circulation with 95,000 terminals chip-based terminals in Thailand.”

According to Mr. Somboon, Visa contactless will be introduced in Thailand in the fourth quarter of this year.