UK contactless spending triples in 12 months
Data released by Barclaycard revealed that contactless spending has more than trebled in the last 12 months.
Barclaycard, which processes nearly half of all credit and debit card transactions in the UK, saw the amount consumers spent using contactless payments soar 150 percent, with the number of transactions rising 134 percent.
Tami Hargreaves, Head of Contactless, Barclaycard said, “In the fifty years that we’ve been in business, we’ve seen consumers adopt many innovations in payments that have become part of our everyday lives.”
“From the credit card to Chip and PIN to contactless and mobile payments, Brits are renowned as fast adopters of new technologies that make our lives easier. Our data released today underlines this trend and shows that ‘touch and go’ is fast becoming a favourite way to pay as both shoppers and retailers value the speed and ease it brings.
“Over the next year we expect the limit increase alongside the forthcoming launch of High Value Payments – where contactless transactions over £30 can be made using a mobile device combined with Chip and PIN authorisation – to drive this growth even further. Ultimately, the uptake of contactless spending is a ‘win-win’ for consumers and businesses alike.”
Barclaycard figures showed that almost six in 10 shoppers (57%) intend to take advantage of the recent limit increase to £30 by upping their contactless usage, suggesting that the speed and convenience of ‘touch and go’ payments is becoming increasingly popular among consumers.
Women now account for 45 per cent of active customers compared to 36 per cent at the end of 2014. In addition, 50 per cent of contactless users are now aged 50 or over, with 20 per cent aged 65 plus, indicating that this technology is being embraced by all consumers regardless of gender or age.
Across the UK, Leeds has seen the biggest increase in contactless usage, with the city’s residents spending 211 per cent more this year compared to last. Also seeing big leaps in contactless spending are Blackpool (200 per cent), Newcastle (192 per cent), Manchester (191 per cent) and Edinburgh (190 per cent).
Overall, London continues to lead the way for contactless penetration with 40 per cent of eligible transactions made contactlessly, up from three in ten in 2014.
Supermarkets receive the lion’s share of contactless spend, accounting for almost a third of all transactions (29%). According to Barclaycard data, the average supermarket shop is £23, meaning that many more shoppers will now be able to benefit from the ease and speed of contactless when buying groceries.
Restaurants generate the second highest number of contactless transactions at 20 per cent, and Barclaycard’s July Spend data also shows that consumers are eating and drinking out more than they were 12 months ago, with year-on-year spending rising 13.6 percent.
Yet, alongside this, we’re also spending less each time we eat out, with the average amount spent falling -5.6%. These trends indicate that consumers will not only be more likely to use contactless to pay when they dine in restaurants – as the limit increase will cover a higher spend – but are also set to use it more often given the increased frequency of restaurant visits.
