Contactless payments boom as coronavirus looms large

A record 62% of UK debit card payments in August were contactless, according to trade association UK Finance.

Much of this can be attributed to the Eat Out to Help Out scheme and the higher £45 payment limit introduced earlier this year.

Brits have also been encouraged by retailers, banks etc to pay by contactless cards and mobile phones to prevent the spread of Covid-19 during the pandemic.

The number of contactless debit card payments reached their highest level in August, accounting for 62 per cent of all debit card transactions, UK Finance's latest monthly Card Spending Update published today reveals. Full details and highlights here > https://t.co/62CyZGGNvb pic.twitter.com/VYneYogMe3
— UK Finance (@UKFtweets) November 17, 2020

45% of credit card transactions were also contactless. Eric Leenders, Managing Director of Personal Finance, UK Finance, says: “The amount of spending on UK debit cards fell slightly in August following a record high in July but remained strong at £58.4 billion.”

“The percentage of credit card balances attracting interest and the annual growth rate of outstanding balances on credit cards continued to decline – the latter dropping by 12.6% over the 12 months to August,” he adds.