Consumers in Britain spent £9m using contactless cards in H1
There were 1.1bn contactless card transactions in the six months ending 30 June, compared to 1.05bn for the whole of 2015. Across the country £9.27bn was spent by consumers in the first half of the year compared to £7.75bn in the whole of the previous year.
The system only requires a simple tap or swipe of a bank card and does not need a pin or signature. Contactless payments account for 18% of card spending, according to the UK Cards Association, up from 7% in 2015.
A spending limit on contactless cards increased in September to £30 from £20 and the average contactless transaction is about £8.60.
The research found that use was high in London, due to contactless payments used on the transport system in the capital. It also found that although contactless card payments had increased, as well increases from online shopping, cash is still the most common method of payment.
The UK Card Association also found fraud on contactless cards was lower than overall card fraud, as in 2015 total contactless fraud amounted to £2.8m, compared to spending of £7.75bn. This was the equivalent of 3.6p in every £100 spent using contactless payment. For card spending it was 8.3p for every £100 spent in 2015.
Barclaycard also found a significant increase in contactless spending. It found there was a 173% increase in contactless payments in the year to July. It also found that the over 60s were the fastest growing age group of people using the payment method. ■