Breaking Down Contactless Payments: 7 Stats You Need to Know

Ever since contactless payments were first introduced in the 1990s, the way consumers make purchases has shifted drastically.

Over time, consumers have come to expect convenience in payment processing, whether they’re doing their weekly grocery shop or engaging in online shopping to find their next favourite outfit.

In this blog post, you’ll learn exactly how important contactless payments are and why you should support them in your business.

How Do Contactless Payments Work?

A contactless payment is any payment that uses Near-Field Communication (NFC) technology, which enables customers to complete a transaction with a tap of their device at a payment terminal.

The process is lightning-quick and secure, and it doesn’t require customers to enter their PIN number or sign a receipt after making a transaction under £100.

1. Around 40% of Payments Were Made Using Contactless Payments in 2023

As the data starts to emerge in recent years, one thing is clear: contactless is one of the most important payment methods, and it’s here to stay.

With around 40% of payments made in the UK being contactless in 2023, it’s never been more important to accept contactless payments in your business.

For customers, it offers the ultimate convenience as all they have to do is tap their smartphone, wearable or other NFC-enabled device to complete a payment.

2. ⅓ of Adults Use Services such as Apple Pay and Google Pay

Around ⅓ of adults complete contactless payments using services such as Apple Pay and Google Pay.

While the demographic for these payment services skews young, it shows that there’s a huge opportunity to capture more sales for your business by integrating Apple Pay and Google Pay with your POS system.

3. Contactless Debit and Credit Card Payment Volumes Expected to Represent 45% of All Payments in the UK in 2033

In the past decade, contactless payments have been on the rise. Ever since 2015, when they accounted for just 3% of all payments made in the UK, they have increased year on year. In 2019 they accounted for 21% of all payments made, and in 2023, this figure jumped up to a staggering 38%.

Now, experts predict that by 2033, 45% of all debit card and credit card payments made in the UK will be contactless.

With such a large percentage of all transactions being contactless, there’s no excuse not to make the most of this payment trend and provide your customers with the convenience of paying how they prefer.

4. The Number of Contactless Payments in the UK Increased by 1.3 Billion from 2022 to 2023

From 2022 to 2023, there was a sharp increase in the number of contactless payments made in the UK by 1.3 billion.

There are various reasons for this drastic jump up in contactless payments in recent years:

• More SMBs adopting card acceptance devices
• A growing consumer preference for contactless payments over chip and PIN
• Rising popularity of services such as Apple Pay and Google Pay

5. In 2023, 94% of Credit and Charge Cards and 93% of Debit Cards in Circulation Had Contactless Functionality

It isn’t just that more people are choosing to make contactless payments either; more people can make contactless payments. In 2023, around 94% of credit card and charge cards in circulation had contactless functionality, as well as 93% of debit cards.

With more contactless-ready cards available to consumers, it became easier to switch to contactless, even if they’d been hesitant to do so before.

6. Supermarkets Accounted for 39% of all Contactless Payments Made in the UK in 2023

One of the main ways people use contactless payment is for their weekly grocery shop. In 2023, 39% of all contactless payments made in the UK were made in supermarkets.

If you run a retail business, this should let you know that consumers are looking for easier ways to pay when running their daily chores and shopping for goods.

7. People of All Ages Use Contactless: 83% of People at the Age of Retirement Used Contactless At Least Once a Month

Contactless payments aren’t just restricted to younger age groups.

83% of people around retirement age claimed that they used contactless payments at least once a month in 2023.

Even though it may seem like a trend for the youth, contactless payments are becoming more accessible for all age groups, and the rate of adoption shows no signs of slowing down.

What Do These Stats Suggest About Contactless Payments?

If you’ve learned anything from reading these stats, it should be that regardless of what industry you’re in or the demographics of your customer base, you should offer contactless payments in your business.

If you can support various payment methods, such as Google Pay and Apple Pay, you could simplify your customers’ shopping experience and make it easier for them to complete transactions with your business.