Retail sector fast in adopting contactless payment

According to Barclaycard research, 57% of shoppers – almost six in 10 consumers – intend to increase the amount of contactless transactions they carry out when the new maximum spending amount – rising from £20 to £30 – is introduced on September 1.

In the last year contactless spending on Barclaycard credit cards went up 150%. Similarly MasterCard recorded 560% year-on-year growth in the value of contactless transactions in July, up from a 373% increase in July 2014.

Compared to the beginning of July 2012 when the average MasterCard contactless purchase was £4.52, in July 2015 it had increased to £7.29

The retail sector has seen the largest increase in contactless payments, with supermarkets accounting for 29% of all transactions, Barclaycard figures indicate, which could rise significantly when the new limit is introduced.

“From the credit card to chip-and-pin, to contactless and mobile payments, British consumers have been fast adopters of new technologies,” says Tami Hargreaves, Barclaycard head of contactless payment. “Over the next year we expect the limit increase alongside the forthcoming launch of High Value Payments – where contactless transactions over £30 can be made using a mobile device combined with chip-and-pin authorisation – to drive this growth even further.”

In addition, Sainsbury’s is planning to roll out contactless payments to its stores next year, further boosting this payment method.