The contactless revolution


The contactless revolution

Following on from our blog last week when we discussed the new Apple Pay, we thought we’d look at the contactless revolution which is sweeping the UK.

New research* by Lloyds Bank Cardnet has revealed that just under half of consumers expect, or would like the option, to pay with contactless debit and credit cards for low-value items.  And, according to the UK Cards Association, the number of contactless payments made rose by 300% in 2014.  According to Lloyds, consumers are becoming frustrated by the number of retailers who haven’t embraced contactless yet and don’t have contactless payment terminals.

What do people like and dislike about contactless payments?

Speed and ease of use are the two biggest advantages of using contactless payments, however, 1 in 10 think that the current £20 spending limit is too low (although this is due to rise to £30 per transaction later this year). For 1 in 3 users the security of paying by contactless is their biggest worry – and Which? has recently highlighted security concerns.

Currently users receive a paper receipt when paying by contactless but this could well change in the future, with industry experts predicting that electronic receipts will be brought in soon.

Increasing the limit

Some consumers have concerns about increasing the contactless spending limit – which perhaps goes hand in hand with concerns over security. Of those Lloyds Bank Cardnet surveyed, 57% wouldn’t like the limit to go over £30, 38% wouldn’t like it to go over £50 and only 5% would be happy for a £50+ limit.

Aidene Walsh, Lloyds Banking Group’s Director of Commercial Cards & Acquiring Solutions, comments: “Industry and our own data shows use of contactless is on the up and consumers are demonstrating a preference to use it to pay for low-value items.  Whilst certain consumers have currently said that they do not mind shopping with businesses that do not offer this facility, we would anticipate that, as more and more people become comfortable with paying through contactless, and appreciate the ease of it, expectations around retailers offering it will increase.”

Get in touch

Do you use contactless payments when you’re out and about? If you do, why not let us know about your experiences on our Facebook page? We’d love to know whether contactless gets the thumbs up or thumbs down from you.

*GfK interviewed 2000 people through online access panels between in March 2015 ( All responses reflect this sample base.