Contactless spending reached a record high in 2024

Based on the bank’s latest consumer spending report, this increase of 1,2% year-on-year highlights the growing preference for contactless transactions among UK consumers. 

Some of the other key takeaways were:

• The average value of these contactless transactions rose from £15.69 to £16.10.
• Consumers used contactless payments an average of 236 times in 2024, totalling £3,803 per person, compared to £3,623 the previous year.
• People over 65 remained the fastest-growing segment for the fourth consecutive year, with 84.1% of them now using contactless payments.
• This is even more apparent as 67% of those aged 61-79 consider contactless payments more convenient than chip and PIN.

Looking into the different sectors, they found:

• Retail (3.4% growth): Grocery spending rose by 3.2%, household purchases by 4.8%, and general retailers by 4.1%. Specialist retailers, including pharmacy and health & beauty, saw a 4.2% increase.
• Hospitality & Leisure (3.7% growth): Eating and drinking spending grew by 2.8%, with bars and pubs up 3.4%. Hotels and accommodation saw the highest increase at 9.5%, while travel spending rose by 6.3%.
• Other Categories (5.2% growth): Most notable, the motoring industry that saw the highest growth of all sectors with a 19.4% improvement. 

Generational differences were also evident in larger transactions. Among Gen Z (aged 18-27), 42% preferred their mobile wallets over cash (30%), while among millennials (aged 28-43), the difference was much smaller, with 33% opting for mobile payments compared to 27% favouring cash.

Karen Johnson, Head of Retail at Barclays, said: “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.”