Figures reveal significant rise in number of card payments made by consumers

contactless cardData published by UK Finance has revealed that card spending totalled £57.1 billion in June – representing a 7% rise when compared to a year earlier.

1.4 billion card payments were made in June, which constitutes a 12% rise when compared to the same time last year.

Contactless payments accounted for 34% of all card transactions, the data found. Online payments constituted 13% of all transactions.

Spending in the retail sector rose by £19 million during June, to total £26.1 billion. Spending on food and drink increased to £10 billion in June.

Meanwhile, services sector spending rose by £138 million to reach £31 billion.

Richard Koch, Head of Cards at UK Finance, said: ‘Contactless payments accounted for a third of transactions in June, with consumers continuing to use their cards for lower value purchases.

‘While spending recorded a relatively modest monthly growth, the number of transactions rose at a faster rate with some 46 million card purchases made every day.’

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credit cardData published by UK Finance has revealed that card spending totalled £57.1 billion in June – representing a 7% rise when compared to a year earlier.

1.4 billion card payments were made in June, which constitutes a 12% rise when compared to the same time last year.

Contactless payments accounted for 34% of all card transactions, the data found. Online payments constituted 13% of all transactions.

Spending in the retail sector rose by £19 million during June, to total £26.1 billion. Spending on food and drink increased to £10 billion in June.

Meanwhile, services sector spending rose by £138 million to reach £31 billion.

Richard Koch, Head of Cards at UK Finance, said: ‘Contactless payments accounted for a third of transactions in June, with consumers continuing to use their cards for lower value purchases.

‘While spending recorded a relatively modest monthly growth, the number of transactions rose at a faster rate with some 46 million card purchases made every day.’

New figures show significant rise in contactless card fraud

Figures published by Financial Fraud Action UK (FFA UK) have revealed a significant rise in the amount of money stolen from contactless bank cards and mobile devices.

Contactless spending rose from £7.75 billion in 2015 to £25.2 billion in 2016. The data revealed that nearly £7 million was stolen in 2016, compared to £2.8 million in 2015.

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However, FFA UK also stated that fraud on contactless cards and mobile devices equated to just 1.1% of total card fraud.

In order to combat contactless card fraud, consumers have been urged to never hand over their card at the point of payment, always ask for a receipt when purchasing goods and review financial statements regularly to check for unusual transactions.

Richard Koch, Head of Policy at the UK Cards Association, said: ‘All contactless cards contain robust security features including an in-built security check which triggers the need to enter a PIN at certain points.

‘Customers are fully protected against any losses and will never be left out of pocket in the unlikely event they are the victim of this type of fraud, unlike if they lose cash.’

Significant surge in contactless card usage

Contactless card usage reached record levels in the first half of this year, with consumers spending over £9 billion using this method of payment.

Data from the UK Cards Association revealed that more contactless card payments were made in the first six months of 2016 than in all of 2015: 1.1 billion contactless transactions were carried out during the first half of this year, compared with 1.05 billion in the whole of last year.

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The figures also show that contactless payments now account for 18% of card spending – up from 7% a year ago.

However, cash is still the most common method of payment, according to the data.

Richard Koch, Head of Policy at the UK Cards Association, commented: ‘Contactless cards are firmly entrenched as the preferred way to pay for millions of consumers who expect to be able to use them for everyday purchases.

‘We anticipate the use of contactless cards will continue to increase, particularly as charities and transport operators outside London recognise the benefits this technology can bring.’

Limit for contactless card payments rises to £30 due to surge in usage

Shoppers in the UK will be able to pay amounts of up to £30 following a surge in contactless card payments.

The previous £20 limit for wave-and-pay card payments has been revoked, as contactless card payments proved popular with UK shoppers.

During the first half of this year, shopping transactions totalled £2.5bn, proving to be significantly higher than 2014’s total of £2.32bn.

The decision to increase contactless card payment limits also coincides with the release of technology giant Apple’s ‘Apple Pay’ feature, which allows owners of Apple devices to make contactless payments.

Kevin Jenkins, managing director of UK and Ireland Visa Europe suggested that contactless card payments were the ‘new normal’.

However, consumer group Which? has warned that contactless cards could be open to exploitation by persistent fraudsters.

Research by Which? suggests that some online retailers forfeit card security at the checkout stage in favour of a speedier transaction.

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