You are here: Home - Saving & Banking - News -

More than a quarter of payments now contactless

0
Written by:
16/06/2021
More than one in four payments made in the UK last year were contactless as consumers shunned cash amid the Covid 19 outbreak.

Figures from UK Finance show the number of contactless transactions increased by 12 per cent to 9.6 billion in 2020 and accounted for more than a quarter (27 per cent) of total payments.

In the last four years, contactless payments have jumped from being just seven per cent of all payments to 27 per cent, the banking trade body said.

Its data shows 83 per cent of people in the UK now use contactless, with no age group or region falling below 75 per cent usage.

Supermarkets, which remained open during lockdown, were the most popular place to use contactless payments in 2020, accounting for 41 per cent of all contactless transactions.

More people also turned to mobile phones and smart watches to make payments last year.

Nearly a third (32 per cent) of the adult population were registered to use mobile payments by the end of 2020, an increase of 7.4 million people compared to 2019.

Meanwhile, the use of cash plummeted, with the number of cash payments falling by 35 per cent last year

During 2020, 13.7 million consumers used cash only once a month or not at all, a significant increase from 7.4 million the previous year.

However, cash remained the second most frequently used payment method behind debit cards and 1.2 million people mainly used cash for their day-to-day spending.

David Postings, chief executive of UK Finance, said: “The pandemic resulted in some marked changes in payments behaviour and while it’s too early to say whether they are permanent changes, we did see an acceleration in some existing trends such as the reduction in cash usage and the growth in contactless and mobile payments.

“The increase in the contactless limit to £45 coupled with retailers encouraging its use meant that more than a quarter of all payments in 2020 were made via contactless. The use of cash fell, reflecting the fact that large parts of the economy were closed during the year, although it still remained the second most popular payment method behind debit cards.

“There remains real diversity in the way in which people choose to conduct their day-to-day spending and the banking and finance industry is committed to helping customers make payments in a variety of different ways.”

Last month, the country’s largest retail banks and building societies committed to ensuring people who needed it could still get access to cash following thousands of bank branch closures and a huge reduction in the number of free-to-use ATMs.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week