Surge in contactless card use

4 June 2015

contactless-payment Since the limit on contactless payments went up, it looks like people are a bit more willing to use the service. That, and it still feels like the whole thing is powered by exciting witchcraft.

With chip & pin being ever-so-slightly time-consuming, it looks like UK consumers are getting into the idea of paying for small shopping trips and, according to the UK Cards Association, there was a 331% increase seen in contactless card spending last year, totalling an impressive £2.32bn of buying stuff.

Now that the limit is higher, it'll only increase further.

This is good news for all those tech companies investing in contactless NFC payments that you can do with your mobiles.

That said, cards aren't dead just yet - they're still the preference for most and has seen an increase too. Richard Koch (stop laughing at the back), head of policy at the UK Cards Association, said: "Consumers are making more than twice as many card payments every day than they were 10 years ago, a clear sign of how people are now choosing to use the cards in their wallet rather than cash."

"With more places now accepting cards, contactless payments and the rise in online shopping, the large jump in card spending we saw last year looks set to continue."

It is thought that, by 2024, 52.5 million card payments will be made each day, because young people don't like anything anything that's in a physical format.

TOPICS:   Banking   Technology

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