Payments made on contactless card machines totalled £6.5 billion in the UK in June 2020, according to the latest available data from UK Finance.
Despite the challenges businesses and consumers have experienced this year, this is an increase of 2.4% from the same period in 2019, and a 15.5% increase from the previous month.
This rise in the use of contactless cards has happened despite consumer spending as a whole declining during the same period these stats were recorded.
So while customers may be spending less overall, they are becoming more reliant on using contactless payment machines when they shop.
This trend towards contactless has accelerated over the last few months.
But contactless payments have been rising for more than a year.
Contactless finally overtook cash as the most popular payment method in the UK last year.
Even shoppers who have only started using contactless in response to current events, say they aren’t likely to return to using cash once the country is back to normal.
In this blog we’ll look at the reasons why your business needs to invest in a contactless card machine sooner, rather than later.
Consumers are being encouraged to go contactless
Since the outbreak of the COVID-19 pandemic, consumers have been encouraged to use contactless payments.
Recommended by the government and the World Health Organisation, shoppers were urged to ditch cash and reduce Chip and PIN payments where possible.
To encourage them, the contactless limit of £30 was raised to £45 in April 2020.
And consumers have taken advantage, with contactless payment use increasing at a faster rate since April.
Shoppers want less restrictions on contactless payment limits
There are still consumers who don’t think a £45 limit is high enough.
Research found that one in three UK consumers would like to see the contactless payment limit increased even further.
About 40% of those surveyed would like to see the limit increased to a figure nearer £100 - roughly the cost of a weekly grocery shop for a family of four.
Contactless payments used to be seen as a way of paying for small value items quickly.
Now, they’re being embraced by UK shoppers as the safest, and fastest, way to pay for everything.
Customers prefer different payment options
Contactless payments aren’t only made using cards.
Smart payment options and mobile wallets such as Apple Pay are becoming more popular each year.
41% of 18-26 years adopted mobile payment apps in 2019, according to a study by Statista.
With the UK geared towards hygienic payments in the wake of the pandemic, it’s expected that this figure will rise in 2020 and beyond.
Consumers naturally spend more when using contactless cards
According to a study by Mastercard, contactless payments have increased consumer spend by roughly 30% since they were introduced in 2007.
When not restricted to just the cash in their wallet, shoppers are more likely to make impulse purchases, pushing up your average transaction value.
Impulse purchases are even faster with a contactless payment machine, leading to an increase in profit for your business.
Is a contactless card payment machine right for my business?
As we reach the last quarter of 2020, it’s clear that consumers have changed the way they want to make payments.
It isn’t going to change back.
COVID-19 hasn’t created the trend towards contactless payments. It accelerated what was already happening.
As we look ahead to shopping trends in the run up to Christmas, adapting your payment process is a vital task.
This is the best time to invest in a contactless payment machine.
Meet customer expectations and future-proof your business against changing consumer habits.
We can help you to get started at the best possible price.
If you already accept card payments, but don’t have a contactless card machine, we can help you switch to us to access a contactless-enabled machine.
To speak to one of our friendly advisors about the best contactless payment machine for your business, click here to get in touch.
