The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Treasury

UK enjoys Summer of Love for contactless cards

For years, much of the hype in payments has been around mobile payments and blockchain technology. But the innovation that has done the most to change British shopping habits has been contactless cards, which launched in 2007 but have really come of age in recent years.

peace-160x186

Total UK card spending reached £57.1 billion in June, up by 0.3% month-on-month and up 7% year-on-year, according to data published by UK Finance, an industry body.

There were just under 1.4 billion card payments in the UK in June, a monthly record. And with the number of card transactions up 12% in 12 months, UK cards have enjoyed their highest annual rate of growth since June 2008.

The rise was partly driven by a robust rise in online sales, with online card payments rising 20%, but the more significant factor was the increase in the use of contactless card payments, which soared by 143%.

debit cards aug17

Contactless payments accounted for 34% of all card transactions, while online payments – which would include payments made through channels like PayPal if the account is linked to a card rather than being pre-funded – accounted for 13%.

UK-issued debit card use abroad was actually down 3.6% between May and June, says UK Finance. Instead, growth in both credit and debit cards has come from domestic spending, especially in the retail market.

Cards accounted for 77% of all retail sales in June, with over a billion debit card payments and over 300 million credit card payments.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree