Value of contactless payments grew 50% last year.
Posted on in Business News , Cycles News
Barclays, which oversees nearly half of the UK’s card spending, has reported that the total value of contactless payments made using Barclays cards in the UK increased by 49.7% year on year in 2022.
Barclays cardholders made an average of 220 tap-to-pay transactions last year, totalling £3,327 per person. Mobile wallets accounted for 4.1% of all contactless payments value last year, up from 3% in 2021. UK payment habits are evolving as consumers embrace digital convenience and use less cash.
In addition, contactless spending grew the strongest among consumers aged 65 and older, with Northern Ireland and Scotland home to the fastest contactless payments user growth in the UK.
While contactless payments have long been popular in the UK, according to the bank, three factors helped fuel higher adoption last year.
• Higher contactless payment limit. The UK raised the contactless payment limit from £45 to £100 at the end of 2021. This gave consumers more opportunities to use their cards in-store.
• Stronger acceptance. All bank-issued card terminals in the UK have accepted contactless payments since January 2020, according to UK Finance. But more merchants, especially small businesses, have started upgrading their payments hardware, expanding contactless acceptance throughout the UK—making it easier for cardholders to make contactless transactions.
• Increased mobile wallet use. While cards make up much of the UK’s contactless payments segment, mobile wallets have made headway: The number of UK proximity mobile payment users grew 10.7% year on year in 2022, accounting for a little over 23% of the UK’s population. Mobile wallets could capture more contactless payment volume going forward as players like Apple Pay and Google Pay expand their features.