Despite the rapid advances in financial technology, recent research has highlighted that the majority of UK consumers remain hesitant about adopting alternative payment methods such as fingerprint or facial recognition.
New research reveals that even though 39 per cent of Brits use contactless technology for payments, most are reluctant to move further towards digital financial solutions.
The study indicates that approximately half (49 per cent) of 18 to 34 year olds are hesitant to make instant payments via fingertip, where a microchip is inserted into one’s finger and linked to a bank account. This reluctance is similarly pronounced among those aged 35-54 (47 per cent), and over 55s (52 per cent).
Regional differences are also apparent. Plymouth emerges as the most apprehensive UK city towards fingerprint payments, with 65 per cent of its residents expressing reservations. Conversely, Belfast exhibits greater openness, with 21 per cent favouring the method.
Concerns extend to facial recognition payments, which 44 per cent of Brits would avoid. Nearly half of the respondents in the 18-34 and over 55 age groups share this sentiment.
Traditional banking methods retain a strong preference among Brits, with 65 per cent favouring the perceived security of conventional banks. This conviction is particularly strong among those over 55 (72 per cent) and 18-34 year olds (63 per cent). Regionally, Manchester shows an even higher preference for traditional banks’ security at 74 per cent, compared to Glasgow and Belfast at 53 per cent.
Sally Francis-Miles, a money expert, observed that financial habits are evolving: ‘The nature of how we spend our money is changing and it’s only a matter of time before some of these payment methods become a reality.’ She noted that while contactless payment was initially met with reluctance, it is now ubiquitously accepted.
The study highlights that contactless card payments remain the most popular method, used by 39 per cent of respondents, followed by cash payments (31 per cent) and chip and pin (27 per cent). Despite this, there is still significant apprehension about a potential cashless society, with 55 per cent expressing concerns over the security of contactless payments.
Finally, an attachment to cash persists, especially for smaller transactions. Just under half (49 per cent) of those surveyed prefer cash for payments under £5.
The findings underscore a significant reluctance among Brits to fully embrace FinTech innovations, with a strong attachment to traditional banking methods and cash. While technological advancements may eventually change payment habits, current attitudes suggest a slow transition towards alternative digital payment solutions.