Barclays’ Consumer Spend data shows the cost of the average purchase increased to £16.10 compared to £15.69 in 2023. Shoppers used the technology more frequently too – 236 times across the year on average, up from 231 in 2023.
This equates to a total average contactless spend of £3,803 per person in 2024, up from £3,623 in 2023.
For the fourth consecutive year, the over-65s were the fastest growing group of contactless users, with 84.1% of this group currently using this payment method. Convenience continued to drive uptake, as more than two-thirds (67%) of those aged 61-79 agreed that contactless payments were easier than chip and PIN transactions.
For payments above £100, the popularity of chip and PIN has remained consistent year-on-year. Across all age groups, four-fifths (78%) named it among their most used methods, followed by cash (29%), and then mobile wallets (24%).
Mobile payments popular with younger generations
For the younger generations, however, mobile wallets outranked cash. Two-fifths (42%) of Gen Z and a third (33%) of millennials selected mobile payments as one of their top preferences for payments above £100. This compared to 30% of Gen Zs and 27% of millennials who opted to use cash.
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Karen Johnson, head of retail at Barclays, said: “Convenience is the driving force behind contactless technology becoming so embedded in the UK’s payment ecosystem. The increasing prevalence of self-service screens at retail and hospitality venues shows the importance of a smooth experience, regardless of the sector.
“However, contactless transactions cannot replace human interaction altogether. Consumer-facing businesses must continue to recognise the value that in-store members of staff can offer when it comes to fostering customer relationships and trust.”
