Contactless spending at new record - Banking - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Contactless spending at new record

Contactless spending at new record

Category: Banking

Updated: 19/05/2016
First Published: 19/05/2016

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The growth of contactless spending is undeniable, with consumers everywhere enjoying the convenience of being able to pay for goods with the tap of a card. As a result, spending on contactless cards has now hit record levels, and it looks set to rise further still in the months and years to come.

The new figures, from The UK Cards Association, show that spending on contactless cards totalled a record-breaking £1.508bn in March, the first time it's ever reached the £1.5bn milestone. It comes just four months after monthly contactless spending hit £1bn (in November 2015), while the £0.5bn milestone was hit in May last year, and means that monthly contactless spending has more than trebled in the past 12 months (the figure stood at £431.1m in March 2015).

The level of growth is further highlighted by the fact that one in seven of all card transactions is now contactless, compared with one in 16 a year ago. In fact, there were a total of 179.6 million contactless purchases made in March (out of a total of 1.18bn card payments overall at £51.9bn) equating to 67 every second, with 86.5 million contactless cards now in circulation in the UK.

"It took almost eight years for monthly contactless spending to reach half a billion pounds - now it's grown by the same amount in just four months," said Richard Koch, head of Policy at The UK Cards Association. "This dramatic rise shows that paying with contactless is now second nature for millions of consumers who see it as an alternative to cash.

"Contactless cards are already being used to pay for travel and to donate to charity, and as the technology evolves, we will see even more environments where contactless will enable fast, easy and secure payments."

Time to get on the bandwagon? Then make sure your current account or credit card provider offers contactless capabilities. If not, or if you're not happy with the service for any other reason, it could be time to compare the alternatives…

What next?

Compare current accounts or credit cards to make sure you can benefit from the convenience of contactless

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Debit card spending still leads the way

Many of us turn to plastic at the tills these days, particularly as contactless technology makes it easier than ever before. It’s little wonder that card spending continues to ramp up – and it’s debit card spending that’s leading the way.

Current account switching to be made even easier

It was announced today that the Current Account Switch Service (CASS) will be undergoing improvements that are to be implemented in a year’s time. This should help give more customers and businesses the confidence to switch to a better bank account.

A quarter of all card payments now contactless

The rise of contactless payments shows no signs of stopping, with new milestones being hit on a seemingly monthly basis. Well, another one has arrived, with new data showing that a quarter of all card payments are now made via contactless means.
 
Close