New data from Barclays reveals that contactless payments have set a new record for in-store transactions in the UK, accounting for 94.6% of eligible transactions in 2024. This marks an increase from the previous year's record of 93.4%. Consumers used contactless payments, on average, 236 times during the year, with the average transaction costing £16.10, leading to a total spend of £3,803 per person, compared to £3,623 in 2023.
The over 65 age group was the fastest growing demographic of contactless users for the fourth year running, with 84.1% utilizing this payment method. Convenience was cited as a key factor, with 67% of those aged 61-79 finding contactless payments simpler than chip and PIN transactions.
Despite the increase in contactless usage, chip and PIN remains popular for payments exceeding £100. Across all age groups, 78% consider it one of their primary methods, followed by cash at 29%, and mobile wallets at 24%. Among younger consumers, mobile wallets are more favored, particularly by 42% of Gen Z and 33% of millennials, compared to 30% and 27% who prefer cash, respectively.
Karen Johnson, Head of Retail at Barclays, commented on the findings: "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."
She added, "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."
The report, known as the Barclays Consumer Spend contactless report, combines a vast amount of transactional data with consumer research to provide insights into UK spending habits. The data covers a multitude of categories, showing varying levels of growth in contactless spending across different sectors. Notably, furniture stores saw a 10.4% increase, while motoring spending surged by 19.4%.
Barclays' insights are based on data drawn from its significant share of the UK credit and debit card transactions market. The research, conducted by Opinium Research in February 2025, included responses from 2,000 participants representing different demographics.
For further information, interested parties can contact Barclays via Risha Sharda at risha.sharda@barclays.com or visit the Barclays website.