If you are outside the UK, contactless payment is most likely not a standard payment method for you. However, for shoppers across the UK, they have quickly taken advantage of the ease and convenience of tap and go payment. The UK Card Association reports that in February 2017, over 369 million contactless transactions were made resulting in over £3,343.9 million spent. Read more statistics here.
With the rapid uptake in contactless, more than retailers are starting to accept this form of payment. Add in the increase of the individual transaction limit from £20 to £30 and contactless is becoming the ideal method of payment across the UK, so much so that more and more standard day-to-day activities are including tap and go as an option.
It’s been said many times before, but we’re using less and less cash. Less than two-thirds of Brits use cash on a daily basis. This has a direct impact on banks and one of their standard services — ATMs. In order to bring customers back and engage more with their services, many banks are looking into contactless ATMs. Barclays has unveiled their contactless machines which allows customers to take out up to £100 without inserting their cards. By making the process faster, they hope to bring people back to banks.
Transport for London (TfL) saw an opening for contactless payments and upgraded their machines to not only accept the Oyster card, but also contactless cards. For many, this is the more convenient way to pay because just one card has to be carried instead of both their Oyster card for transport and bank card for other purchases. Also for visitors who are unfamiliar with the ticketing system, using a contactless card can be the easiest route to take.
In many cities across the globe, paying with card, let alone contactless, in a cab is out of the question. However, in late 2016, all London Black Cabs were required to start accepting card payment including contactless. Now there’s no need to worry about having enough cash on hand or the need to make an extra stop at a cash point, you can simply get to your destination and tap and go. Read here how Payworks and cab:app enable Black Cabs across the UK to accept card payment.
Even the not so regular action of donating money has become more available with the help of tap and pay technology. Barclaycard, a leader in payment solutions, has introduced contactless donation boxes with the help of Payworks’ technology. Now, charities across the UK have access to a solution which will enable them to still receive donations even though fewer people are carrying cash.
Impact on Point of Sale
It’s important to understand how shoppers want to pay. And with the growing popularity of contactless cards and mobile wallets, Point of Sale solutions need to not only have card acceptance integrated, but they also need to be able to accept NFC payment. In the UK alone, contactless makes up 25% of payments and is quickly growing. Developers of Point of Sale solutions can ensure their merchants aren’t missing out on these transactions by integrating with the latest payment gateway technology from Payworks. Learn more here.
Written by Jana Riddick, Marketing & Communications Manager at Payworks
First published on Medium on 10-05-2017