Contactless Payments Surge Fivefold In UK

One in five of all physical card payments under £30 in the U.K. are now contactless payments.

This rise in contactless payments usage shows a fivefold increase by shoppers, The Telegraph reported on Monday (April 4), contributing to the growing popularity of mobile and contactless payments.

“The trajectory for contactless payments continues to look very strong,” Kevin Jenkins, managing director U.K. and Ireland for Visa Europe, told the media outlet.

“Increasing the spending limit to £30 has clearly encouraged consumer adoption and retailer opportunity across Britain; families are now able to do their weekly supermarket shop and pay contactless; the increase has driven a demonstrable shift in consumer behavior,” Jenkins continued.

The data from Visa shows that in the six months since the contactless spending limit was raised from £20 to £30 in September last year, nearly 36 million transactions were made, with 95 percent of such purchases being made on Visa cards.

The effect of this rise was also noted by research from Barclaycard, which found that the restaurant industry in the U.K. saw usage of “touch-and-go” payments double, up by 92 percent.

The biggest adoption change that really drove the growth of contactless payments, however, was the retail industry. Among all spending categories, the report noted, 30 percent of contactless transactions occurred in supermarkets, which particularly benefited from the £10 rise in contactless spending limit, with £25 being the average cost of a basket in supermarkets across the U.K.

“While the number of transactions continues to grow, we are already seeing the next generation payment technology arrive, with mobile and wearable payment services bedding in,” Jenkins added. “Where the convenience and safety of making a contactless payment is available, consumers are eager to be cash free and proud.”