UK Sees 91.1% of Eligible Transactions Made Contactlessly with 40.2% Year-on-Year Increase in Value
- 91.1% of eligible transactions were made contactlessly in 2021
- Average number of contactless transactions grew by 27.5% daily after the limit rise in October 2021
- Entertainment sector saw a 105.8% increase in value of contactless payments
- Sports and outdoor retailers experienced a 64.7% rise, clothing stores 64.6%, takeaway and fast food outlets 39.2%
- Individual users made an average of 180 contactless payments worth £2,293 in 2021
- Thursday 23 December was the busiest day for contactless transactions with a 121.4% increase compared to daily average
Contactless payments skyrocketed in 2021 as the UK embraced the £100 limit, with 91.1% of all eligible card transactions being made contactlessly and a 40.2% year-on-year increase in their total value. Barclaycard data revealed that daily contactless transactions grew by 27.5% following October’s limit rise. The entertainment sector saw the highest growth at 105.8%, while sports, outdoor retailers, and clothing stores experienced a 64.7% and 64.6% increase respectively. Takeaway and fast food outlets witnessed a 39.2% rise in contactless payments. On December 23rd, the busiest day for contactless transactions, their value jumped by 121.4% compared to the daily average. Jose Carvalho, head of Consumer Products at Barclaycard, stated that consumers appreciate the £100 limit and prefer ‘low-touch’ payment methods like contactless due to speed and convenience.
Factuality Level: 10
Factuality Justification: The article provides accurate information from Barclaycard’s data on contactless payments in 2021, including specific sector growth rates and the impact of the increased limit. It also includes quotes from experts to support the findings.
Noise Level: 3
Noise Justification: The article provides relevant information about the growth of contactless payments in 2021 and offers insights into specific sectors that benefited from the increased limit. It also includes quotes from industry experts to support its claims. However, it lacks a broader analysis or exploration of potential drawbacks or consequences of this trend.
Financial Relevance: Yes
Financial Markets Impacted: Contactless payments industry
Financial Rating Justification: The article discusses the surge in contactless payments, which can impact financial markets through changes in consumer behavior and the adoption of new payment methods.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk