A recent survey by retail banking and e-payments software supplier Compass Plus, found that the use of contactless payments is falling well behind expectations in the U.K. Less than 10 percent of survey respondents said they had used their contactless card within the last month; only 4 percent used a smartphone.

In terms of security, 34 percent thought contactless cards were the least secure method of payment. Online debit card transactions were named as the second least secure (26 percent), and payments via smartphone were (24 percent).

The study found that cash still rules for perceived security with 57 percent believing it to be the most secure form, followed by credit cards (34 percent) and debit cards (32 percent). Ninety-three percent of participants had withdrawn cash from an ATM in the last month.

"The research illustrates the difference in opinion and expectations from payment industry experts and the consumer," said a spokesperson for U.K. direct debit bureau SmartDebit. "It is widely believed that the U.K. is becoming a cashless society ... However, this survey shows that while the industry perceives the transition to be the case, consumer adoption is not meeting the expected levels. The lack of awareness of differing payment types combined with security concerns and 'comfort in cash' are contributing factors to the low level of uptake."

The Compass Plus survey included 160 respondents from the U.K.

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