24th Aug 2016
The number of customers making use of contactless payments is on the rise. More organisations have adopted the technology, realising that it makes it easier for customers to do business with them, figures from the UK Cards Association show.
According to the latest data, spending and the number of transactions on contactless were higher in the first half of this year than during the whole of 2015.
Research into customer priorities by the Institute of Customer Service suggests that ‘ease of doing business’ has become increasingly important for customers, a significant factor in the popularity of contactless.
Consumers spent more than £9bn using contactless payment methods between January and June 2016, while the total spend for 2015 was just £7.75bn. There were 1.1 billion contactless transactions in the first half of the year, compared to 1.05 billion last year.
The figures also reveal that contactless payments accounted for 18% of total purchases in June, compared to just 7% in June of last year.
The number of contactless card payments within the retail sector in particular increased by 5.2 million to 799 million, with spending increasing by £134m to £25bn. The findings suggest that marketing to encourage the use of contactless for small retail purchases has paid off.
The association’s head of policy, Richard Koch, believes the trend will continue across other industries, too. “Contactless cards are firmly entrenched as the preferred way to pay by millions of consumers, who expect to be able to use them for everyday purchases,” he says. “We anticipate that the use of contactless cards will continue to increase, particularly as charities and transport operators outside London recognise the benefits this technology can bring.”