Contactless payments are now more popular than the traditional chip-and-pin transactions. This is the first time this has happened in the UK, according to the payment processing company Worldpay.
Worldpay is the processor for a variety of large and small businesses globally. It was the UK’s largest payment processing company before it was purchased for 9.3 billion by American rival Vantiv. The two now operate as a combined group with head quarters in Cincinnati.
According to Worldpay, contactless payments exceeded chip-and-pin back in June. Indeed, 51% of in-store card transactions were paid via contactless. This figure rose to 52% in July.
The data showed that the use of contactless payments rose by a sharp 30% from June 2017 to June 2018.
One reason for the growing use of the hassle-free form of payment is an increase of its upper limit. Indeed, the upper limit on transactions has risen to £30. This, in conjunction with an increased number of businesses accepting the payment method, has driven its popularity.
Some of the main businesses to see a move to chip-and-pin payments are fashion retailers, Worldpay revealed. This is followed by betting shops and department stores.
Executive vice president at Worldpay, Steve Newton, commented:
“The rise of contactless is part of a bigger story: it’s not simply about tap and go – it’s about convenience and reducing the parts of the shopping experience that customers find irritating, like queuing and waiting to pay.”
Both contactless and chip-and-pin payments overtook cash transactions for the first time last year. British Retail Consortium figures show that last year card payments accounted for more than half of all UK retail transactions. This year, contactless payments have exceeded chip-and-pin. More and more businesses are accepting the method and advances such as Apple Pay are making contactless transactions easier than ever.
At 16:39 GMT -4 yesterday, shares in Worldpay Inc (NYSE:WP) were trading at -1.66%.
