UK consumers have embraced the limit increase from £20 to £30 on contactless cards, with pubs, supermarkets and restaurants the prime drivers of growth, according to new analysis from Visa Europe.
Some 36 million transactions, worth almost £900 million, have been made in the £20 to £30 value bracket since the upper limit was upped to £30 in the UK in September 2015. This has also generated significant growth in the overall number of contactless payments, which rose by 237 per cent between October 2015 and March 2016, compared to the same period the year before.
Transactions over £20 witnessed an average monthly growth rate of 19.1 per cent, more than twice the average monthly growth rate of 8 per cent for transactions under £20. Contactless usage between £20 and £30 now accounts for over 10 per cent of all face-to-face card transactions within that spending bracket.
Kevin Jenkins, managing director of Visa Europe, UK and Ireland, said: “The trajectory for contactless payments continues to look very strong. Increasing the spending limit to £30 has clearly encouraged consumer adoption and retailer opportunity across Britain. Families are now able to do their weekly supermarket shop and pay contactlessly; the increase has driven a demonstrable shift in consumer behaviour. “
The analysis shows that supermarkets have enjoyed a 100 per cent increase in contactless payments compared to the previous six months, as the average supermarket shop amounts to £25. Restaurants saw a 155 per cent increase, while the average contactless transaction at the pump at service stations has risen from £8.47 to £10.69.
The largest surge in contactless transactions within the price band was seen in bars and pubs, with an average weekly growth of 30 per cent. This is in comparison to the 3 per cent rise for contactless purchases under £20, suggesting larger rounds or more expensive bottles of wine are now being purchased via the tap and go method.
Jenkins added: “Overall, we have seen 36 million contactless transactions over £20 in the first six months; which amounts to nearly £900 million of transactions made easily and safely, in less time, freeing consumers from the need to carry cash. While the number of transactions continues to grow, we are already seeing the next generation payment technology arrive, with mobile and wearable payment services bedding in.”
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