Over £2Bn In Contactless Card Payments – A 5th Of All Payments!February 1, 2017
Latest figures from The UK Cards Association show that contactless spending on a monthly basis has now exceeded £2 billion!
Throughout 2016, spending on contactless has increased each month. For instance, in March, contactless spending had reached £1.5 billion but only three months later, was topping £2.1 billion in July, with total spending on cards increasing to a record £53.9 billion. Meaning contactless technology made up 19% of all card payments.
Indeed, the first six months of 2016 saw contactless payments total a whopping £9.27 billion!
Spending is on the rise
Overall card spending is most certainly on the rise, but it was the hotel industry which saw the biggest increase in the first half of the year, with card payments in June and July rising by 25%, up to a total of £2.1 billion. This is attributed to a rise in domestic and international tourists as a result of the value of the pound being lower.
The UK Cards Association’s Head of Policy Richard Koch made the following comment on the rise in adoption of contactless technology:
“Consumers’ adoption of contactless continues apace, with the number of contactless payments jumping by a tenth in just one month. At over £2 billion, contactless spending in July was more than three times higher than the same period last year.”
He added that “Spending on cards as a proportion of overall spending increased to 77 per cent in August, despite a slight downturn in spending in the wake of the EU referendum.”
Indeed, data shows that spending on cards in August actually saw a 4.2% increase on the previous year and rose to £54.3 billion.
Card spending in the retail sector also saw an increase of £134 million and went up to £25.2 billion in August. Likewise spending in the service sector increased by £235 million, up to £29.1 billion.
Koch stated that: “More and more spending is via cards, which are central to the economy and used increasingly for smaller, everyday purchases.”
Tourism retail on the up
This appears to be backed up by data which shows that spending at merchants related to tourism, such as theme parks, zoos, aquariums, and other tourist attractions also grew. Obviously the increase can also be attributed to the time of year, i.e. school holidays, as well as the lower value of the pound.
An increase in spending was also noted in restaurants and pubs, with the former seeing an increase of 2.8% and the latter, 11.9 %. Electronics retailers and furniture merchants also saw a significant increase in spending.