Contactless payments hit record high in 2024

New Barclays Consumer Spend data shows a record 94.6 per cent of all eligible in-store card transactions were made using contactless in 2024, surpassing the previous year’s record of 93.4 per cent. Shoppers used the technology more frequently, 236 times across the year, on average (vs. 231 in 2023) – and the cost of the average purchase increased to £16.10 (vs. £15.69 in 2023). This equates to total average contactless spend of £3,803 per person in 2024, up from £3,623 in 2023.

For the fourth consecutive year, the over 65s were the fastest growing group of contactless users, with 84.1 per cent of this group currently using this payment method. Convenience continued to drive uptake, as over two thirds (67 per cent) of those aged 61-79 agree that contactless payments are easier than chip and PIN transactions.

For payments above £100, the popularity of chip and PIN has remained consistent year-on-year; across all age groups, four fifths (78 per cent) name it amongst their most used method, followed by cash (29 per cent), and then mobile wallets (24 per cent).

For the younger generations2 however, mobile wallets outrank cash; two fifths (42 per cent) of Gen Z and a third (33 per cent) of millennials select mobile payments as one of their top preferences for payments above £100, compared to 30 per cent of Gen Z and 27 per cent of millennials who opt to use cash.

Karen Johnson, Head of Retail at Barclays, said “Convenience is the driving force behind contactless technology becoming so embedded in the UK’s payment ecosystem. The increasing prevalence of self-service screens at retail and hospitality venues shows the importance of a smooth experience, regardless of the sector.

“However, contactless transactions cannot replace human interaction altogether. Consumer-facing businesses must continue to recognise the value that in-store members of staff can offer when it comes to fostering customer relationships and trust.”

	Contactless Spend Growth 2024 vs 2023
OVERALL	3.7%
Retail	3.4%
Clothing	1.1%
Grocery	3.2%
Food & Drink Specialist	4.8%
Supermarkets	3.0%
Household	4.8%
Electronics	6.0%
Furniture Stores	10.4%
Home Improvements & DIY	3.3%
General Retailers	4.1%
General Retailers & Catalogues	13.0%
Department Stores	5.0%
Discount Stores	-3.5%
Specialist Retailers	4.2%
Pharmacy, Health & Beauty	5.2%
Sports & Outdoor	3.5%
Other Specialist Retailers	3.1%
Hospitality & Leisure	3.7%
Eating & Drinking	2.8%
Bars, Pubs & Clubs	3.4%
Restaurants, Cafes & Bakeries	2.6%
Takeaways and Fast Food	2.7%
Entertainment	5.3%
Hotels, Resorts & Accommodation	9.5%
Travel	6.3%
Public Transport	1.6%
Other Travel	10.0%
Other	5.2%
Fuel	0.3%
Motoring	19.4%
Other Services	15.5%