The use of contactless cards to make payments has continued to gain monthly momentum in the UK, according to figures released by Visa Europe. Consumers made almost 20 million (19.7 million) contactless transactions across the UK in May 2014, an 18% increase on April 2014 alone. More than 37.8 million contactless cards have now been issued by UK banks, a 35% increase on the same period last year.
May 2014 also set a new record for the total value of transactions made by contactless cards in the UK in a single month, reaching £126.7 million, a 14% increase on April 2014. This also indicates a growth of 189% since May 2013.
The average UK transaction value for contactless cards in May 2014 was £6.43. This figure represents a 34 pence per transaction increase since May 2013, where contactless payments averaged £6.09 per transaction.
Visa Europe’s data also shows that in addition to increased usage by consumers and greater issuing of contactless cards from banks, the UK’s top 30 retailers are helping to drive use of the payment method. The top 30 retailers accounted for 67% of all contactless payments in May 2014.
Mark Austin, Director of Contactless at Visa Europe comments: „Growth in Visa contactless payments is accelerating at a phenomenal pace. Driven by increased consumer awareness, the commitment of UK banks to issue Visa contactless cards and UK retailers activating contactless terminals, Visa contactless payments have reached record highs in the past few months. The pace of growth has been particularly exciting to see, as consumers experience the value, speed and convenience that Visa contactless payments deliver”.
London is leading the way in the area of transport ticketing and TfL (Transport for London) will soon be one of the world’s largest single merchants accepting contactless payment cards. Contactless payments have operated on the capital’s bus network since December 2012, and have been used by around 825,000 customers for 17million journeys.
Around 65,000 journeys a day are being made using a contactless payment card.A pilot of the system on the London Underground and rail network which began in April involving around 3,000 customers has been successful.
Last month, Tfl announced they set the launch date for contactless payments on transport services in London for 16 September this year. The new option means that customers will no longer be any need to spend time topping up Oyster balances because fares are charged directly to payment card accounts.Contactless payments – credit, debit, charge or pre-paid cards or devices – work in the same way as Oyster, charging the pay as you go fare by touching in and out on the readers at the start and end of every journey.
In addition to ‘daily’ capping, a new Monday to Sunday cap will also apply for customers using the contactless payment option, as TfL’s advanced system will automatically calculate the best value contactless fare over the course of the week.
Only one charge per day will be sent to the bank or financial provider for payment – clearly referencing it as a payment to TfL for travel. Registered customers will be able to easily view their journey and payment history via their TfL online account.
Reacting to the news Graham Peacop, Managing Director of the UK Cards Association, said: “This is a major step for contactless cards. Usage is already growing rapidly this year with London leading the way, and the introduction of contactless payments across the capital’s transport network means we expect this surge to continue. Our experience shows that once people see how fast, easy and secure it is to pay with a contactless card for travel, they then make the switch from cash for other small payments too.”
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
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