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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Significant rise in contactless card payments during 2015

Over one billion contactless card payments were made during 2015, according to new data from the UK Cards Association.

Last year, one in 13 purchases were made using contactless card technology. This rose to one in eight during the month of December. The new figures also reveal that more money was spent using contactless technology last year than was spent during the previous seven years combined.

During 2015, a total of £7.75 billion was spent by shoppers using contactless cards in 1.05 billion transactions.

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This payment method was introduced in the UK in 2007, initially for low-value transactions of up to £10. The limit further increased to £20 before reaching £30 during September 2015.

Furthermore, the UK Cards Association reported that 79 million credit and debit cards now feature contactless payment technology. This accounts for almost half of all cards.

However, some experts have expressed concerns over the security of contactless card payments. The consumer group Which? revealed that card information could be stolen by criminals wishing to make purchases online. This is achieved by the criminal standing close to a victim in order to ‘lift’ the card’s details.

Contactless cards now contain a built-in security check in the form of a pin number which must be entered after a shopper makes consecutive contactless payments. This then helps to verify the legitimate cardholder.

‘Two cheques a year’ to be written by the year 2024

Trade association Payments UK predicts that, by the year 2024, a mere two cheques will be written by adults each year.

The organisation also claims that debit cards will become the most popular form of payment, with cash only being used to purchase goods twice in every three days.

The new prediction comes after a recent surge in the use of contactless technology as a method of payment, with small value transactions increasingly being made via contactless cards and devices.

Payments UK anticipates that, during 2016, the amount of payments that are non-cash will be noticeably higher than the use of coins and notes.

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Additionally, the organisation also suggests that consumers will increasingly opt to purchase lottery tickets and supermarket goods online, instead of paying for them in cash.

By 2024, it is predicted that each adult will make an average of 225 cash payments a year, while the number of payments made using debit cards is expected to total 282 during the same year.