Barclays: UK Contactless Payments Hit All-Time High in 2024

Contactless payment adoption in the UK has reached unprecedented levels, with new data from Barclays showing that 94.6% of all eligible in-store card transactions were made using contactless technology in 2024.

The figure, which represents transactions up to the £100 contactless payment limit, surpasses the previous year's record of 93.4% according to the bank's Consumer Spend report, which analyses hundreds of millions of customer transactions.

British consumers used contactless payment methods more frequently in 2024, averaging 236 transactions per person compared to 231 in 2023. The average transaction value also increased to £16.10 from £15.69 in the previous year.

This usage pattern translates to an annual contactless spend of £3,803 per person, up from £3,623 in 2023, representing a 5% increase in per-person spending via the technology.

Demographic shifts

For the fourth consecutive year, consumers aged over 65 were the fastest growing segment of contactless users, with 84.1% of this demographic now utilising the payment method.

The report indicates that convenience remains the primary driver for adoption among older users, with 67% of those aged 61-79 stating that contactless payments are easier to use than chip and PIN transactions, which require inserting a card into a terminal and entering a four-digit code.

For transactions exceeding the £100 contactless limit, chip and PIN remains the dominant payment method across all age groups, with 78% of consumers naming it among their most used methods, followed by cash (29%) and mobile wallets (24%).

The data reveals notable generational differences in payment preferences for higher-value transactions.

Mobile wallets, which enable payments via smartphones and smartwatches through technologies such as Apple Pay and Google Pay, have gained significant traction among younger consumers.

Among Generation Z consumers (aged 18-27), 42% select mobile payments as one of their preferred methods for transactions above £100, compared to 30% who opt for cash. Similarly, 33% of millennials (aged 28-43) prefer mobile payments for these higher-value transactions, while 27% choose cash.

Sector performance

Contactless spending growth varied significantly across retail and hospitality sectors in 2024. The furniture stores category saw the highest growth at 10.4%, while discount stores experienced a 3.5% decline in contactless transactions.

General retailers and catalogues recorded 13% growth in contactless spending, while the motoring sector saw a 19.4% increase. This represents the highest growth rate across all categories tracked in the Barclays report.

The hospitality and leisure sector experienced modest growth in contactless payments at 3.7%, with bars, pubs and clubs seeing a 3.4% increase and restaurants, cafes and bakeries recording 2.6% growth.

Travel-related contactless payments grew by 6.3% overall, with public transport registering a modest 1.6% increase while other travel categories saw 10% growth.

Karen Johnson, Head of Retail at Barclays, notes the importance of convenience in driving contactless adoption: "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."

Karen adds: "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."

Barclays, which launched the UK's first contactless card – the 'Barclaycard OnePulse' – in September 2007, conducts the Consumer Spend research using a representative sample of 2,000 UK consumers surveyed by Opinium Research.

The bank's unique position in the payments ecosystem, processing nearly 40% of the nation's credit and debit card transactions through its issuing and acquiring businesses, provides it with comprehensive insight into UK consumer spending patterns.

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