One in every 10 card payments we make is now contactless, suggesting that the “wave and pay” revolution is gathering pace, it emerged this week.
Contactless payment cards were introduced in the UK in 2007, and after a slow start tap-and-go is beginning to take off. In October, 10.3% of all card transactions were made using contactless technology, the first time the 10% milestone was passed, according to the UK Cards Association. In September, 8.9% of card payments were contactless, while a year ago just 3.7% of card payments were made with a single swipe against a reader at the till.
Some 120.5m contactless card payments took place across the UK in October, and the average value of a payment has increased to £7.72. This comes after the maximum limit for a single contactless transaction increased in September from £20 to £30.
Richard Koch, head of policy at the UK Cards Association, says: “With one in 10 card payments now contactless, it’s clearly the preferred way to pay for millions of consumers.”
Meanwhile, Barclaycard says its data shows contactless spending in service stations, pubs and bars has nearly doubled since August, as the £30 limit has enabled more people to pay in this way.
Paul Lockstone, managing director at Barclaycard, says: “We’re expecting 2016 to be another recording-breaking year.”
However, millions are locked out of contactless, with several banks and building societies still sending out cards that cannot be used in that way.
Last month, Guardian Money told how consumers are at risk of falling victim to fraudulent payments made on contactless credit and debit cards that have already been cancelled following loss or theft. Guardian research revealed that banks do not automatically check many contactless payments, letting thieves continue to use stolen cards even after they have been stopped. This is because some payments, such as when a card is used to pass through London’s tube network barriers, are waved through as offline transactions and only checked later. However, figures for fraudulent contactless transactions are low.
