Worldpay is declaring a tipping point for contactless payments in the UK, as tap and pay transactions overtake Chip and Pin for in-store card payments for the first time.
The latest figures from Worldpay show that contactless usage jumped by 30% in the past year to become the most popular form of card payment for in-store transactions.
Fashion retailers have seen the greatest shift from Chip and PIN to contactless, with the sector citing a massive 415% year-on-year increase. Mobile contactless payments also rose significantly in the clothing and footwear sector, up almost 500% over the past year. Betting shops and department stores also saw significant growth of mobile contactless payments: between 150-250%.
Worldpay predicts that during the final six months of 2018, UK shoppers could spend up to £38.5billion via contactless transactions in-store. Part of this growth comes from the rise in use of mobile wallets such as Apple Pay, Samsung Pay and Google Pay, which have seen a 114% increase on the high street over the same period.
Steve Newton, Worldpay EVP says: “The rise of contactless is part of a bigger story: it’s not simply about tap and go - it’s about convenience and reducing the parts of the shopping experience that customers find irritating, like queuing and waiting to pay. Over 50% of shoppers believe that their phones could replace their wallets within the next five years - the phenomenal growth of mobile contactless is a leap along this path. With the added benefit ‘limitless’ transactions and biometric security offered by mobile wallets, our smart phones could be the key to the next frontier of frictionless commerce.”