Contactless payments up 92% since September

Touch and go payments rose by 92% from September to December according to Barclaycard data, with contactless spending in fast food outlets and in restaurants also rising by 62% and 51% per cent respectively over the same period.

Less cash

The study found that more than 8 in 10 consumers used less cash than they did a year ago and 19% said they were annoyed if they couldn’t pay using contactless cards or devices.

Barclaycard said its research indicated that contactless was a huge potential growth area for UK retailers as it was now the preferred payment method for almost half of shoppers.

With contactless payments now accounting for one in 10 card transactions – totalling near £1bn a month - a significant opportunity existed for the two thirds of merchants who did not currently accept contactless.

Limit increase

Following the September limit increase, contactless spending in service stations, pubs and bars rose by 98% and 92% respectively.

Spending in fast food outlets and supermarkets also rose - both by 62%.

Across all categories, supermarkets led the charge in the adoption of new payment technology, Barclaycard said.

Contactless transactions now accounted for 30% of all transactions made in supermarkets and the £30 upper limit meant the average cost of a basket of goods – £25 – could now be covered in a single contactless transaction.

As consumers searched for ways to make larger payments faster, high value contactless payments – where shoppers made payments over £30 using a mobile device with chip and pin authorisation – were likely to become increasingly popular this year, Barclaycard said.

Mobile app

This year Barclaycard would become the first financial services brand to launch high value payments on Android devices when it expanded the functionality of its mobile app to include contactless mobile payments, it said.

Customers using the feature will be able to make contactless payments for transactions up to £30, and make high-value contactless payments of up to £100 by entering their pin on their mobile device.

Barclaycard customers would also be able to report a lost or stolen card on their phone and have it immediately replaced by a virtual replacement card.

Frustrated

Barclaycard managing director Paul Lockstone said in 2015 contactless became even more popular, to the point that customers were frustrated when retailers didn’t offer it as an option.

“As the consumer appetite for new ways to pay continues to grow, particularly with the upcoming launch of high value payments and the continuing growth in wearable payment devices, we’re expecting 2016 to be another recording breaking year for contactless,” he said.

“The consumer trend towards contactless is only set to increase, with our data showing that time pressed shoppers don’t like to hang around – there’s a real opportunity for UK retailers to step-in and meet this growing consumer demand.”