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Nine in ten card payments are now contactless: Lloyds

Lloyds concluded that debit card spend made in person using contactless technology has grown from 65% to 87% in the last three years

contactless payments Lloyds

Nine in ten card payments are now contactless: Lloyds. Source: unsplash.com

According to Lloyds Bank, nearly 90% of in-person debit card purchases are now contactless. Nine of ten consumers turn to contactless payments when eating out or going to the supermarket.

Namely, debit card spending made in person using contactless technology has grown from 65% to 87% in the last three years.

The growth of contactless has been largely accelerated by the Covid-19 pandemic. The healthcare measures prompted the contactless payment limit to rise. Initially, the transaction cap increased from £30 to £45 and then rose again to £100.

As for the distribution range, contactless payments are most popular in restaurants (93% of transactions). However, they are least popular in electrical stores (68% of transactions), where average purchase prices are high. In the latter case, contactless payment limits prevent usage growth. 

Furthermore, Lloyds has witnessed strong uptake for its Tap and Pay feature allowing customers to set their own payment limits. Since the feature was introduced last year, 800,000 debit card customers have used it to freeze contactless payments or choose an alternative limit. Over half of those customising their limits have opted for one under £50.

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Nina Bobro

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https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.