Nine out of 10 UK card payments in 2020 were contactless
Contactless payments accounted 88.6% of complete card payments in 2020 as restrictions on contact-based payments drove individuals to the cost methodology, in response to information from Barclaycard.
Despite many outlets closing for lengthy durations throughout numerous lockdowns to cut back the unfold of Covid-19, the full worth of contactless payments elevated by 7% in 2020 in comparison with 2019. For instance, there was a 29% enhance in the use of contactless in UK grocery shops.
Contactless playing cards, which allow customers to make payments by scanning a reader when checking out, were first launched in 2007 with a £10 spending restrict. This restrict has progressively elevated, and the most contactless cost permitted is now £45 after it was introduced up from £30 in April 2020.
The resolution to extend the restrict on contactless spend to £45 has pushed the typical worth of contactless payments by 29% throughout 2020, to £12.38, in contrast with £9.60 in 2019, stated Barclaycard.
Banking trade commerce physique UK Finance needs the restrict raised, and it not too long ago requested the HM Treasury to think about growing the utmost quantity that may be paid utilizing contactless playing cards from £45 to £100.
While the financial advantages of elevating the contactless cost methodology are plain to see, there are safety fears. Contactless playing cards don’t confirm whether or not the individual making the cost is the card proprietor. This is totally different to a cost methodology comparable to Apple Pay, the place a fingerprint is required, and in consequence spending on contactless playing cards is proscribed. But UK Finance stated contactless-only fraud equates to simply 2.5p in each £100 spent.
Barclaycard stated that customers made 141 payments utilizing contactless in 2020 on common, which was price a mean of £1,640 in complete.
Raheel Ahmed, head of client merchandise at Barclaycard, stated: “We are delighted to see that even more Brits are relying on contactless to make in-store payments. We believe that contactless is the safer, faster and most responsible way to pay in store, and we encourage all consumers to take advantage of it wherever possible.”
According to UK Finance information, round two-thirds of debit card payments in September 2020 were contactless, which was a file excessive. UK Finance discovered that 64% of all debit card transactions were made by contactless playing cards, in comparison with 62% in the earlier month.
It stated the worth of general contactless spending was additionally up by over 18% in contrast with the similar interval final yr.
The progress in contactless cost adoption is spurring growth in the trade, and banks try to extend contactless limits via inside IT growth. For instance, BNP Paribas has a undertaking so as to add biometric authentication to contactless payments, with a Visa card that shops fingerprint info. This will permit prospects to make high-value payments utilizing contactless playing cards.
In October 2020, Capgemini’s World payments report revealed that 38% of individuals have began utilizing a brand new cost supplier through the lockdowns.
It additionally revealed that contactless playing cards were the second hottest cost methodology, with 64% of individuals utilizing them “often”. Only web banking and direct account transfers were used extra all through the well being disaster (68%).