A record 94.6% of all eligible in-store card transactions in the UK were made using contactless payments last year, a rise from 93.4% in 2023. According to data from Barclays, Brits averaged 236 contactless payments throughout the year. The typical purchase cost also saw an increase, from £15.69 to £16.10, leading to an average annual spend of £3,803 via contactless in 2024, up from £3,623 in the previous year.
For the fourth consecutive year, the over-65 age group has been the fastest-growing demographic for contactless payments, with 84.1% of this group currently utilizing the method. Convenience is a key factor, with over two-thirds of individuals aged 61-79 agreeing that contactless payments are easier than chip and PIN transactions.
When it comes to purchases exceeding £100, chip and PIN remains a consistent favorite across all age groups, with 78% citing it as one of their most commonly used methods. Cash follows at 29%, and mobile wallets at 24%. However, younger generations show a preference for mobile wallets; 42% of Gen Z and 33% of millennials identify mobile payments as a top choice for transactions above £100, contrasting with 30% of Gen Z and 27% of millennials who still prefer cash.
This trend may soon evolve, as the Financial Conduct Authority has recently proposed plans to remove the £100 contactless limit on card payments.
Karen Johnson, head of retail at Barclays, stated, “Convenience is the driving force behind contactless technology becoming so embedded in the UK’s payment ecosystem. The increasing prevalence of self-service screens at retail and hospitality venues underscores the importance of a smooth experience, regardless of the sector.”