UK consumers using contactless cards have surpassed chip and pin payments for in-store purchases for the first time.
The news comes from a report published by global payment firm Worldpay.
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Due to convenience and security features, the shoppers preferred contactless card over chip and pin card, leading to 30% increase in contactless payments during the past year.
Worldpay has estimated that contactless transactions worth £38.5bn will be carried out during the second half of 2018.
The surge in contactless payments is backed by increased use of mobile wallets, including Apple Pay, Samsung Pay and Google Pay, which have witnessed 114% increase on the high street over the same period.
According to the report, Northern Ireland has witnessed the highest growth in both contactless and mobile contactless transactions, followed by the North West.
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By GlobalDataFashion sector has seen a 415% year-on-year increase in contactless payments. Similar promising trends for mobile contactless payments were seen in the clothing and footwear sector, as the sector registered nearly 500% increase over the past year.
Betting shops and department stores also recorded considerable growth of mobile contactless payments between 150-250%.
Worldpay executive vice president Steve Newton said: “The data clearly shows that shoppers are moving towards more convenient forms of payment. This aligns to what we’re seeing in a number of sectors: time-poor consumers want instant access to their goods.
“The rise of contactless is part of a bigger story: it’s not simply about tap and go – it’s about convenience and reducing the parts of the shopping experience that customers find irritating, like queuing and waiting to pay.
“Over 50% of shoppers believe that their phones could replace their wallets within the next five years – the phenomenal growth of mobile contactless is a leap along this path. With the added benefit ‘limitless’ transactions and biometric security offered by mobile wallets, our smart phones could be the key to the next frontier of frictionless commerce.”
