Recent research from Lloyds Bank highlights the surge of contactless payments as it finds 90% of its customers use the payment journey when buying retail goods.
The research stated that nine out of 10 Lloyd’s Bank users say they opt for contactless methods when eating out or during trips to the supermarket. Lloyds has attributed the rise in contactless payments due to the aftermath of the COVID-19 pandemic along with limit increases.
From April 2020, contactless payment limits increased from £30 to £45, then rising to £100 in October 2021. Lloyds believes this has played a pivotal role in the 38% rise of contactless debit card payments from June 2019 – 2022.
The UK bank found in its customer research that contactless payments accounted for 65% of face to face transactions in June 2019, growing 72% in June 2020, 83% June 2021, and most recently, 87% in June 2022.
However, due to the £100 limit on contactless purchases, usage of face to face transactions dwindled with the average price of retail goods (furniture, electronic goods, etc.) exceeding the price limit.
Lloyds found that customers prefer to use their contactless purchases on restaurants (93%), health and beauty (90%), supermarkets (86%), clothing (80%), and more, as it has become the most convenient payment method for consumers.
“The convenience of a contactless payment is clear when you look at the growth in this type of payment over time, with 87% of face to face debit card transactions now made using the technology,” commented Gabby Collins, Payments Director at Lloyds Bank.
“We know how important choice is for customers, so our mobile app gives customers the option to set their own contactless limit, as well as turn the option on and off, and we’ve seen around 800,000 customers use the tool since we introduced it in 2021.”
Lloyds Bank allows customers a range between £30 – £95 for debit or credit card contactless limits. Since its introduction in 2021, customers are able to freeze payments or choose alternative limits of their choosing.
The UK bank stated that 60% of debit card customers have opted for a limit of £50 or less, whilst a further 25% have set their limit to the highest limit of £95.
