Contactless payments continue UK rise

UK consumers made over 60 contactless transactions a second in February, according to the latest data from The UK Cards Association.

Overall, there were 1.182 billion transactions made using payment cards in February 2016, compared to 1.071 billion in February 2015. Of the February 2016 total, 159.1 million transactions were contactless – equivalent to around 63 per second.

Some £52.4 billion was spent in the UK on payment cards in February, up from £50.9 billion in February 2015. Debit cards accounted for £37.3 billion of spend, while credit card purchases were worth £15.1 billion.

The average contactless transaction also grew in value to £8.28, reflecting the impact of last year’s increase to £30 of the contactless payment limit, the association noted.

By contrast, the average value of overall card transactions – specifically those made online and in shops – declined. This indicated a change in spending habits, with consumers increasingly using cards instead of cash for smaller purchases, argued Richard Koch, head of policy at The UK Cards Association.

He said: “With more than 60 transactions taking place a second, it is clear contactless card payments are becoming ever more popular. Whether picking up a pint of milk or buying a sandwich, customers are consistently voting with their wallets and using their cards as the predominant way of paying.”

The data also showed that online spending accounted for 24 per cent of all card payments in February, up from 22 per cent a year ago. However, overall retail sector card spending decreased slightly by £15 million to £24.4 billion in February, while service sector spending rose by £69 million to £28.0 billion.

    Share Story:

Recent Stories


Sanctions evasion in an era of conflict: Optimising KYC and monitoring to tackle crime
The ongoing war in Ukraine and resulting sanctions on Russia, and the continuing geopolitical tensions have resulted in an unprecedented increase in parties added to sanctions lists.

Achieving operational resilience in the financial sector: Navigating DORA with confidence
Operational resilience has become crucial for financial institutions navigating today's digital landscape riddled with cyber risks and challenges. The EU's Digital Operational Resilience Act (DORA) provides a harmonised framework to address these complexities, but there are key factors that financial institutions must ensure they consider.

Legacy isn’t the enemy: what FSIs can do to keep their systems up and running
In this webinar we will examine some of the steps FSIs have already taken to rigorously monitor and test systems – both manually and with AI-powered automation – while satisfying the concerns of regulators and customers.

Optimising digital banking: Unifying communications for seamless CX
In the digital age, financial institutions risk falling behind their rivals if they fail to unite fragmented communications ecosystems to deliver seamless, personalised customer experiences.

This FStech webinar sponsored by Precisely explores vital strategies to optimise cross-channel messaging through omnichannel orchestration and real-time customer data access.