Press Office

Sydney, 2 April 2009 – Retailers across the country are losing customers as a result of in-store queues. The Australian Queuing Behavior Survey by MasterCard Worldwide has revealed that over two-thirds (67%) of consumers abandon their purchase all together if it means standing in line, while 75 per cent of Australians will take their money elsewhere.

Despite recent attempts to attract retail spend to stimulate the economy, retailers risk losing business unless something is done to minimise queuing, especially in peak times, as two in three (67%) Australians are frustrated within five minutes of joining a queue.

The Australian Queuing Behavior Survey was conducted by Galaxy Research, nation wide in November 2008. It does not represent MasterCard’s financial performance.

Eddie Grobler, executive vice president, Australasia, MasterCard Worldwide says the survey also provides insight into the retail categories that are set to lose customers unless measures are taken to speed up payment at the point of sale.

"Australian consumers are less likely to tolerate queues at fast food restaurants (36%), at stadium events (35%), petrol stations (28 %), convenience stores and supermarkets (25%). The survey also indicates over half (52%) of customers get angry and frustrated because the cashiers never seem to be in a hurry – suggesting more needs to be done to streamline retail purchases," he says.

The survey revealed that two in three (65%) Australians would be interested in using a contactless payment device to speed up the process, thus alleviating their frustration and propensity to abandon their sale or make their purchase elsewhere. In addition, recent independent data¹ indicates 41 percent of consumers use cash less often today than they did two years ago.

"There is consumer demand for a faster way to pay, and contactless payment technology such as MasterCard PayPass can cut down on queues by giving an alternative to cash for everyday small purchases," says Grobler.

"As of 4Q 2008 there are currently over 50 million MasterCard PayPass cards and devices in use at over 141,000 merchants worldwide. This more than doubles the number of these contactless payment cards and devices in circulation around the world in the last year. Australian consumers are increasingly time-poor, so providing a convenient alternative at the point of sale will allow retailers to serve more customers in less time – resulting in shorter queues and a better way to do business."

Mr Grobler also says that retailers across the globe that currently accept PayPass are growing their customer base and loyalty by offering consumers this fuss-free payment option, and stand to benefit from reduced cash handling, improved payment terminal reliability, improved customer satisfaction and reduced operating costs. "Consumers simply tap their PayPass-enabled card on a specially equipped merchant terminal, eliminating the need to fumble for cash and coins, hand their card over to a clerk, or swipe the card. Signatures and PINs are not required for PayPass purchases under $35, further speeding customers’ transactions. The technology can also be implanted on non-card devices, such as mobile phones, key-fobs or watches."

Globally, MasterCard PayPass contactless payment using Near Field Communication (NFC) enabled mobile phones has successfully been launched in Japan, Taiwan, Korea, and the U.S. In Australia, where the survey has identified a need in the market for faster service and payment methods, MasterCard PayPass is being rolled out on MasterCard cards issued by Commonwealth Bank and is being trialled on mobile phones.

The nationwide survey of 1,052 people aged 18 and above was carried out in November 2008 by Galaxy Research.

The Australian Queuing Behavior Survey by MasterCard Worldwide is conducted by Galaxy Research, one of Australasia's leading qualitative and quantitative research companies. It does not represent MasterCard financial performance. The computer assisted telephone survey of 1052 people aged 18 years or older was conducted during 21 – 23 November 2008.

MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes approximately 21 billion transactions each year, and provides industry-leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard^®, Maestro^® and Cirrus^®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.