Contactless spending in the UK is on the rise with mobile ‘tap and pay’ transactions set to “threaten the future of the traditional payment card”, according to new analysis by Worldpay of consumer spending patterns.
Research found that the total number of contactless transactions on mobile devices reached 38 million last year with £288m spent.
Workers paying for lunch on the go (54%) and payments for drinks in bars and restaurants (20%) are the main drivers of the increase in transaction volume.
Retailers in London in particular are encouraged to accept mobile transactions as the research showed that “Londoners are setting the pace in terms of adoption” with 32% of all mobile transactions in 2016 taking place within the M25.
James Frost, UK CMO of Worldpay, said:
“Contactless cards have paved the way for rapid adoption of mobile payment systems, driving investment in infrastructure and familiarity among consumers.
“As people get more used to paying for goods on their smartphone, mobile’s ability to bridge more effectively across online and offline retail channels will increasingly threaten the future of the traditional payment card. Already more than half of UK shoppers say they’d happily leave their wallet at home and pay for everything on their smartphone instead.”