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September 5, 2022

New Lloyds Bank survey shows contactless payments’ use growing to 87%

New data released by Lloyds Bank has revealed that debit card payments made through contactless technology has increased from 65% to 87% in the past three years.

The data showed that nearly nine out of ten card payments have become contactless.

In April 2020, when the world was reeling under the Covid-19 pandemic, the limit of contactless payment was raised from £30 to £45. It was further increased to £100 in October last year.

The increase in limit has paved way for contactless as the preferred mode of payments for customers.

Restaurant as well as health and beauty spendings have attributed to the growth of contactless payments, with nearly 90% of in-person card payments are made with debit cards in both these categories, the survey unveiled.

Despite the rise in contactless payment, retailers, including furniture or electrical stores, which on an average require more than £100 of purchase price, saw a decline in contactless payment.   

The Lloyds Bank survey also found 89% of department and online stores witnessing contactless as a major method of in-store payments, and 86% of supermarkets seeing the use of the same technology as the main mode of in-person transactions.

Approximately 85%, 80%, 77%, 68% and 87% users in the hardware, clothing, furniture, electrical and average retail segments, respectively, have used contactless as a primary choice of face to face transactions.

Lloyds Bank payments director Gabby Collins said: “The convenience of a contactless payment is clear when you look at the growth in this type of payment over time, with 87% of face to face debit card transactions now made using the technology.

“We know how important choice is for customers, so our mobile app gives customers the option to set their own contactless limit, as well as turn the option on and off, and we’ve seen around 800,000 customers use the tool since we introduced it in 2021.”

Last year, the bank rolled out a feature that enabled its customers to pick their own limit for contactless transaction on their debit or credit cards. The limit was between £30 and £95.

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