Contactless payments reached record level in August
18 Nov 2020
Contactless payments via debit cards reached a record level in August, accounting for 62% of all debit card transactions during the month, according to data released by UK Finance.
UK Finance found that 46% of all credit card transactions were contactless during August, representing an increase of 14.6% when compared to the previous month.
The easing of lockdown restrictions and the government's 'Eat Out to Help Out' scheme, combined with the increased £45 contactless spending limit, boosted all contactless card transactions in August by 7%, the data revealed.
Eric Leenders, Managing Director of Personal Finance at UK Finance, said: 'As lockdown restrictions continued to be eased in August, we saw record numbers of customers choosing to make contactless payments using debit cards. Contactless card transactions using either debit or credit cards also increased compared to July, suggesting that consumers are taking advantage of the £45 contactless spending limit.
'Meanwhile, 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.'