Behaviour change can sometimes happen fast, sometimes slowly, and sometimes needs something to catalyse it.
Around a decade ago, Cayman banks introduced debit cards, initially requiring people to sign slips, then moving to PIN pads.
Prior to that, though there were ATM cards, there were no debit cards, so many retail transactions were done with cash or cheque, including such things as supermarket shopping.
When debit cards were introduced, though, they took off fast, with very high rates of adoption within just a few months.
Why? I’d hazard a guess that, for many, they felt more sophisticated than cash or cheques, so that felt “cool” and was incentive enough to catalyse rapid change.
Now, fast forward a number of years and let’s look at contactless payment. I’ve been out and about in Cayman having at least three or four meetings in cafes or restaurants every day for the last week. I’ve been observing both the availability and usage of contactless and finding that it is hardly used at all, even though it is available.
Availability is there, as all cards are enabled for contactless (though no, there is no Apple or Android Pay functionality offered as yet by Cayman banks). When I have asked, I have also found that. in all cases, credit card terminals are enabled for contactless, but retailers simply don’t use it. Customers are not asking for it, nor are they pushing it for use.
In fact, I went to one cafe the other day and did work through the conversation so I could use it, but then went back yesterday. On that occasion my breakfast companion paid, and they simply brought the card slip for them to sign.
So, in Cayman contactless is there, but simply not used. There has been no catalyst for it.
In London, however, payment not only by card but by phone is now almost universal. Why? Two catalytic events.
First, a few short years ago, transport in London started to allow payment by contactless debit card rather than the hassle of a transit (“Oyster” ) card that you had to top up. You simply tapped and went through the barriers. So easy.
Second, when covid hit, nobody wanted to handle cash, or even cards, let alone pens to sign card slips. Contactless card use took off, including a very quick raising of the transaction limit by 50% (to £45). However, beyond that, paying by phone also took off, not least as that payment method has no transaction limit.
Within a short time, I would go out for the day without a wallet at all, using my phone for transport and buying stuff.
I observe the differences simply as an example of how behaviour change can sometimes happen fast, sometimes slowly, and sometimes needs something to catalyse it.
For Cayman, the plan is to re-open the borders on October 14th, yet I have really not heard people talking about what this will mean when the “bubble” re-opens. Behaviour will need to change on a day to day basis, including mask-wearing indoors and more, yet it feels odd to me that nothing is being really said about that to ready people for this, to catalyse change before the moment it has to happen.
Enough musing for today, I wonder what thoughts will pop into my head for tomorrow’s post from more Cayman conversations?