Mobile payments fast approaching tipping point, Worldpay

The number of UK in-store contactless transactions made via mobile devices totalled 126 million last year, with the amount spent topping £975 million, according to Worldpay research. This marks a 328% year-on-year rise and, with almost a third of consumers now taking advantage of their phone’s payment capabilities, we will witness exponential growth over the next 12 months, the company claims.

Accounting for 59% of all in-store mobile transactions, the supermarket sector has been an important driver in the uptake of digital wallets such as Apple Pay, Google Pay and Samsung Pay. Pubs, bars and restaurants make up a further 12.5%. Meanwhile, in the second half of 2017, the average spend per transaction increased by 11%, with a notable lift-off following the increase in retailers accepting ‘limitless’ Apple Pay transactions in May. Consequently, luxury department stores and high end boutiques are now one of the fastest growing sectors; although the volume of transactions in this category still remains a small fraction of the total (2.9%), its share of the market has more than doubled since last year.

James Frost, CMO at Worldpay, says: “Digital wallets are growing in popularity every day, but what’s interesting is the shift in the way people are shopping with their smartphone. No longer just restricted to light bites and post-work pints, mobile contactless payments are becoming increasingly popular for higher-end purchases too, as manufacturers integrate more sophisticated security features into handset designs.”