Ron Delnevo, MD of independent ATM operator Bank Machine today dubs research into contactless cards 'risible' and 'a waste of cash'.

"I find it truly risible that Visa is promoting their latest research which shows that 41% of people in a contactless trial felt it was an easier and faster way to pay for small items than cash. This of course means that 59% of consumers in fact think that cash remains the most convenient payment method. They are simply promoting the fact that, after spending tens of millions of pounds on research, development and advertising, they have made a 1% difference to consumer habits*. I am not sure I would be claiming this as a big success and would consider it, frankly, a waste of corporate cash!"

The only solid conclusion from the trial was that people had security concerns about the use of contactless payment methods. This echoes the results of a survey carried out when contactless cards were first launched in the UK, which found that 70% of people believed that the introduction of contactless systems would increase fraud.

"At a time when everyone should be watching what they are spending and in the midst of a worrying rise in debt, it is all the more cynical for card issuers to continue to promote the use of contactless cards, fully aware that research now proves that consumers spend more on cards than they do when using cash, even if they can't afford to do so**. Moreover, when the British taxpayer will now be picking up the bill for the reckless behaviour of financial institutions, banks have a responsibility more than ever to the public - and that includes encouraging sensible spending habits."

* Based on statistics from APACS report, UK Cash and Cash Machines 2007, showing 6 in 10 payments were made with cash

** Research carried out by academics from New York University and the University of Maryland (click here to view), which showed that people were prepared to pay significantly more when they knew that they were able to pay by card.

NOTES TO EDITORS:

Ron Delnevo, Managing Director of Bank Machine, is a former Director of the Payments Council as it was formulating the National Payments Plan, published in May 2008.

Bank Machine created the UK's independent ATM market ten years ago and now has over 2,500 cash machines in locations including cinemas, garage forecourts and retail outlets - ranging from Selfridges to convenience stores.

It began by installing pay-to-use cash machines in convenient locations, but has since been building a free-to-use network - with over 500 free-to-use ATMs installed in, for example, NHS hospitals, military bases and low income areas.

Based in Hatfield, Hertfordshire, Bank Machine (a division of Cardtronics Inc.) now has nearly 100 staff.

For further information about Bank Machine, please visit its website (www.bankmachine.com) or contact Fran Cooke at Quintus Public Affairs on 0207 340 6260 / email fran@quintuspa.com