Contactless spending is quickly becoming the payment method of choice, with the latest figures from The UK Cards Association showing that 18% of all card purchases are now made using contactless technology, up from 7% in May 2015.
This continued growth is even bucking the trend of the card market as a whole: overall card spending growth slowed in May, rising by just 5.4% year-on-year, the slowest growth rate seen since July 2013. In contrast, spending on contactless cards has risen by a truly impressive 247% year-on-year, highlighting the continued uptake of this form of spending.
Overall, spending on cards totalled £52.6bn during the month, spread over 1.2bn purchases, an increase of 13m compared with April. Debit cards continued to lead the way with £37.5bn spent – equating to 77% of all card transactions – an increase of 6% year-on-year.
Online spending is also experiencing particular growth, accounting for £12.6bn of all card spending in May, a notable increase of 12.6% year-on-year. This also equates to 24% of the total spend, up from 22% in May 2015, highlighting the ongoing shift towards online rather than high street shopping.
"Cards are the preferred way to pay for millions of consumers, whether picking up something small and using a contactless card or shopping online," said Richard Koch, head of Policy at The UK Cards Association. "With payment cards being used more than ever, we expect these trends to continue."
It certainly doesn't look as though these trends will stop anytime soon. Indeed, card spending as a whole looks set to continue rising, particularly the contactless variety, as more and more people seek the convenience of this method of payment.
Have you gone contactless yet? If not, what's stopping you? More and more providers are offering this form of technology, but if they're not – or if you're unhappy with your bank or credit card provider for any other reason – it could be time to switch. Compare the top bank accounts and credit cards to see if you can get a better deal.
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 Any products featured may be withdrawn by their provider or changed at any time.
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