Contactless transactions have overtaken chip and pin payments for the first time in the UK, as consumers embrace more convenient forms of payment, according to the latest figures from Worldpay.

Analysis of card transactions processed by the company in the UK between January and July 2018 versus the previous year, showed contactless usage jumping by 30 per cent to become the most popular form of card payment for in-store transactions.

This trend has continued into the second half of this year, with a consistent rise in contactless payments versus chip and pin.

Worldpay predicts that during the final six months of 2018, UK shoppers could spend up to £38.5 billion 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 an astonishing 114 per cent increase on the High Street over the same period.

Fashion retailers have seen the greatest shift from chip and pin to contactless, with the sector citing a 415 per cent year-on-year increase. Mobile contactless payments also rose significantly in the clothing and footwear sector, up almost 500 per cent over the past year. Betting shops and department stores also saw growth of mobile contactless payments of between 150 and 250 per cent.

The added convenience and security of ‘limitless’ mobile contactless payments could pave the way for phones to replace wallets over the next decade, according to Worldpay, with its research also finding that 65 per cent of consumers say they would make a contactless purchase of up to £50 – the current limit is £30.

The trend towards tap-and-go is being seen nationwide, with Northern Ireland having greatest uplift in both contactless and mobile contactless transactions. Worldpay suggested that this demonstrated the desire for more frictionless and convenient purchasing experiences is being driven by an evolution in shopper behaviour over isolated regional trends.

Steve Newton, executive vice president at Worldpay said the data shows that shoppers are moving towards more convenient forms of payment.

“This aligns to what we’re seeing in a number of sectors: time-poor consumers want instant access to their goods. Whether buying clothes or booking holidays, speed and ease are the watch words for meeting consumer expectations; the popularity of online shopping, mobile payments and click-and-collect is testament to this.”

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