Chip and PIN vs Contactless: Security & Speed Comparison 2025

The Numbers: Security Comparison

Processing Speed Comparison

Speed advantage: Contactless is 3-4x faster than chip & PIN. For a business serving 100 customers daily, this saves 8-10 minutes daily = 50 hours annually.

Security Features Comparison

Contactless Security

• EMV chip technology: Unique encrypted code per transaction
• £100 limit: Higher amounts require PIN
• Spending limit enforcement: PIN required after 5 transactions or £300
• Card must be within 4cm: Cannot be skimmed from pocket
• Zero liability: Customer not liable for fraud

Chip & PIN Security

• EMV chip: Same encryption as contactless
• PIN verification: Additional 4-digit security
• No transaction limit: Can process any amount
• Customer verification: PIN proves cardholder identity

Surprising fact: Despite PIN entry, chip & PIN has HIGHER fraud rates (0.012%) than contactless (0.009%) because contactless limits reduce fraud opportunities.

Customer Preference Data

According to Which? Consumer Survey 2024:

• 92% prefer contactless for transactions under £100
• 78% find PIN entry annoying for small purchases
• 65% abandoned purchases when contactless unavailable (forgot PIN)
• 83% use mobile wallets (Apple Pay/Google Pay) regularly

Business Impact

Queue Times

Barclaycard study shows contactless reduces queue times by 38% during peak hours due to faster processing.

Customer Spending

Customers spend 12% more on average when using contactless vs PIN entry (psychological friction of PIN reduces impulse purchases).

Abandoned Transactions

PIN-only businesses see 8% abandoned sales from customers who forgot PINs. Contactless eliminates this.

When to Use Each Method

Contactless Appropriate For:

• All transactions under £100
• High-volume businesses (speed critical)
• Quick-service environments (cafes, fast food)
• Customer-facing retail

Chip & PIN Required For:

• Transactions over £100
• After 5 consecutive contactless payments
• After £300 cumulative contactless spend
• When contactless fails (damaged chip)

Conclusion

Contactless wins on all metrics:

• ✅ Safer: 0.009% fraud vs 0.012% for PIN
• ✅ Faster: 1.8 seconds vs 6-8 seconds
• ✅ Preferred: 92% customer preference
• ✅ Higher spend: 12% increase in basket value
• ✅ Fewer abandonments: 8% reduction in lost sales

All UK card machines should prioritize contactless for transactions under £100. Chip & PIN remains essential for higher-value transactions.