Contactless cards went “mainstream” in 2015

More consumers chose to pay with contactless cards in 2015 than ever before, as contactless payment went “mainstream” and embedded itself into everyday spending, according to a new report from the UK Cards Association.

Last year, 7.75 billion pounds was spent using contactless cards, compared to 2.32 billion pounds in 2014, reflecting the increase in the payment limit to 30 pounds from 20 pounds, and the growth of contactless transport ticketing.

The UK Cards Association, which represents banks and cards issuers, also found that the growth in spend increased more than the growth in the number of contactless cards, with 49 percent of the cards in issue having contactless functionality by December 2015.

In total, UK consumers spent 660 billion pounds on debit and credit card purchases in 2015, an increase of 10 percent from 2014.

In addition, the report adds that card spending online was up 20 percent, to 210 billion pounds from 175 billion pounds in 2014. By the end of 2015 half of online spending took place on tablets and smartphones, up from 37 percent in 2014. It means almost a third of card spending now takes place via the internet.

The UK Cards Association chief executive, Graham Peacop, said: “With the amount spent using contactless cards almost trebling between 2014 and 2015 and the payment limit increasing to 30 pounds, it is clear 2015 was the year contactless went mainstream. Whether buying a sandwich on the go, or paying for a round of drinks or a tube journey, contactless has become the default way people choose to pay for every day shopping.

“A wide range of retailers are moving away from simply offering a traditional high street experience to embrace e-commerce and innovative ways of taking payments. At the same time, consumers are increasingly using their cards, and especially their contactless cards, for smaller and smaller purchases. With such convenience and flexibility, payment cards will continue to play a central role in the future.”

The UK Card Payments 2016 report predicts debit cards will be used for 21 billion payments in the UK, worth 856 billion pounds, by 2025. The next generation of account holders are expected to be a major factor in the predicted growth of card payments, with younger people more likely to embrace new technologies such as contactless cards and mobile payments, and to contribute to the growth of e-commerce.