Contactless card payments on the rise with transaction limit set to increase
2 in 5 card payments are made with “tap and go” cards, new data shows.
The use of contactless payments surged by 31% in 2018, according to the latest data from banking trade body UK Finance.
UK cardholders made some 6.3 billion payments using contactless debit cards in 2018, a 29% increase on the previous year.
The growth in popularity of contactless credit cards was even greater, with cardholders making 44% more purchases of this kind in 2018 compared with the previous year.
This surge in the use of the “tap and go” payment feature appears to show that consumers have cast aside their security doubts about paying without a PIN.
The contactless payment maximum, above which you have to enter a 4-digit PIN, is £30, but an increase in usage throughout 2018 is expected to lead to an increase in that limit.
Buses and other public transport along with high-street shops have been rolling out contactless payments, which is likely to have fuelled the rise, according to UK Finance.
Eric Leenders, managing director of personal finance at UK Finance, said: “Many of us are now reaching for our cards or mobiles rather than cash to make low-value purchases, as customers opt for the convenience and security of paying with contactless.
“There has also been an increase in credit card use although growth in outstanding balances has slowed, suggesting many consumers are using their cards for day-to-day spending rather than as a means of borrowing.”