In a testament to the evolving landscape of financial transactions, the United Kingdom witnessed a remarkable 30% surge in contactless payments last year, according to recent data from UK Finance, a prominent banking association representing over 300 firms in the industry.
An astounding 17bln contactless payments were recorded in the UK in the past year, marking a substantial 30% upswing from the previous year. The figures underscore a changing trend in consumer behaviour, with an impressive 87% of people engaging in contactless payments at least once a month.
The average value of these contactless transactions also experienced an upward trajectory, with each payment averaging £15.10 in 2022, up from £12.66 in the preceding year. This signals not only an increase in the frequency of contactless transactions but also rising confidence in using this payment method for higher-value purchases.
While contactless cards paved the way for this transformative shift in payment habits, the adoption of mobile wallets, including popular services like Apple Pay, has also seen a commendable rise. Approximately 30% of individuals are now registered for at least one mobile wallet, demonstrating a diversification in the means through which consumers prefer to make payments.
The United Kingdom has been at the forefront of adopting contactless payment methods, leading Europe in the percentage of retail transactions conducted through this seamless technology. This widespread acceptance spans demographics and age ranges, showcasing the inclusive nature of contactless transactions in the country.
The report suggests that the surge in contactless payments aligns with the overarching trend of digitalisation in the UK. Online banking and mobile payments experienced notable growth, reflecting a shift in consumer behaviour; however, the practicality of using cash, particularly in budgeting, remained relevant for some individuals facing cost-of-living challenges.
Despite the surge in digital transactions, total cash payments exhibited a rare uptick, increasing from 6bln in 2021 to 6.4bln last year; however, the proportion of cash payments relative to the total fell to 14% from 15.5%, emphasising the continued decline of cash as a dominant payment method.
As the UK Finance report highlights, the trajectory of payments is poised for further transformation. Over the next decade, forecasts predict continued growth in card and mobile payments. Innovations such as open banking are anticipated to introduce new dynamics to the payments sector, shaping the financial landscape in unforeseen ways.
Against this backdrop, Monevium emerges as a steadfast ally in the transition toward a cashless society. With an innovative smartphone app enabling real-time transaction tracking and robust two-factor authentication, coupled with physical or virtual cards facilitating seamless 'tap and go' transactions, Monevium stands as a reliable solution in the evolving world of digital payments.
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