According to a new research from Timetric, contactless payments have become a major tool for migrating consumer payments from cash to cards, particularly debit cards.
“Contactless cards have gained popularity in the UK, contributing to the growth of payment cards transaction values over the last few years. Contactless technology is now a feature of around 60 million, or a third of payment cards in the UK. Many major merchants and transport networks, including Marks & Spencer, the Post Office and Transport for London, now accept contactless payments and the service has become a new high street trend,” says Vladimir Vukicevic, Lead Analyst at Timetric.
“Shift of lower value payments from cash to payment cards has been one of the key trends in the UK market and we expect that this trend will continue, as more and more cardholders become accustomed to making low-value payments by card. In a notable milestone, UK consumers spent more on debit cards than they did by cash for the very first time in 2010,” comments Vukicevic.
The growth in contactless cards is likely to continue in 2015. ‘We expect to see between 15 million and 20 million contactless cards in the UK in 2015. The UK is currently one of the leading global markets in contactless cards and their popularity is likely to continue, adds Vukicevic.
With contactless payments at retail outlets, the payment process for low value transactions has become quicker and convenient for both consumers and retailers alike. The technology is anticipated to drive increase in card transactions over the next five years.
The UK has become a hot bed for payments innovation. A well developed card acceptance network, sound regulations and consumers’ willingness to adopt alternative payment methods are likely to attract more payment innovation in the years to come, Timetric predicts.