UK contactless spend triples in 12 months

Contactless spending has tripled in the UK over the last 12 months, according to new research from Barclaycard, with the amount spent soaring by 150 percent, while the number of transactions increased by 134 percent.

According to a survey of Barclaycard customers, 57 percent of Brits said that they expected to increase their contactless usage now that the single transaction limit is set to rise from 20 pounds to 30 pounds on September 1.

Regionally, Leeds has seen the biggest growth in contactless spending over the last year, spending 211 percent more year-on-year, higher than any other UK city. Other cities that have seen a sharp rise include Blackpool up 200 percent, Newcastle 192 percent, Manchester 191 percent and Edinburgh by 190 percent.

Overall, London continues to lead the way for contactless penetration with 40 percent of eligible transactions made contactlessly, up from three in ten in 2014. This continued rise is largely accounted for by the increase in popularity of contactless travel on London’s tubes, trains and buses.

The research also revealed that women are catching up with men in their usage, with 45 percent of transactions now made by females, compared to 36 percent at the end of 2014. In addition, 50 percent of contactless users are now aged 50 or over, with 20 percent aged 65 plus, indicating that this technology is being embraced by all consumers regardless of gender or age.

Tami Hargreaves, head of contactless at Barclaycard, said: “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 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 pounds can be made using a mobile device combined with chip and pin authorisation – to drive this growth even further.”