Contactless card use soars

Latest figures from UK Finance have indicated that cash is no longer king as contactless card use figures have soared.

The figures showed that contactless payments increased by 83% for credit cards and 56.2% for debit cards.

Whilst there were 2 billion debit card transactions in November 2021, 29.5% more than the same month last year and 22.6% more than 2019.

There were 353 million credit card transactions in November 2021, 29.1% and 14.7% more than 2020 and 2019 respectively. Meanwhile, outstanding balances on credit cards contracted by 0.2% in the twelve months to November as repayments outstripped new borrowing.

Commenting on the figures, Helen Morrissey, Senior Pensions and Retirement Analyst at Hargreaves Lansdown said “We’ve been falling out of love with cash as a means of payment for a while, but the pandemic is certainly speeding the trend. Our online shopping habit and the reluctance of many shops to accept cash payments means the number of purchases we pay for in plastic continues to grow.”

“Most notable is the huge growth in contactless payments. No longer do you have to worry about forgetting your PIN at the supermarket checkout and the recent decision to increase the limit to £100 means this method of payment has become a no-brainer for most of our transactions.”

“We may have been flashing the plastic more, but this certainly isn’t translating into higher credit card balances. Outstanding amounts on credit cards contracted by 0.2% showing repayments were outstripping borrowing. However, it is worth saying these figures are from November and as the cost of living continues to soar figures in the coming months may not look so rosy.”