Barclays has issued a significant update to its contactless card technology following an impressive rise in usage. A report from the bank reveals that contactless transactions accounted for a record 94.6% of all eligible in-store card payments in 2024.
This surge is a clear indication of the growing reliance on digital payment methods, with more consumers adopting contactless as their preferred way to pay. The rise in contactless payments is not only a milestone for Barclays but also reflects broader trends in the UK’s payment ecosystem.
According to Barclays’ Consumer Spend contactless report, the value of contactless spending has continued to increase, with consumers now using the technology more frequently than ever before.
Contactless Spending Surges Among Older Generations
According to the report, the over 65s demographic is now the fastest-growing segment of contactless users, marking a notable shift in payment habits. For the fourth consecutive year, this age group showed the most significant growth in adoption, with 84.1% of individuals now using contactless payments.
Convenience is key to this trend, with over two-thirds (67%) of those aged 61-79 indicating that they find contactless payments easier than traditional chip-and-PIN methods. The trend of older generations embracing technology shows that contactless payments are no longer limited to younger, tech-savvy consumers.
Barclays has pointed to the simplicity and speed of contactless transactions as key factors behind the increased usage among older users, who may have previously been hesitant to adopt newer payment methods.
With the rapid expansion of this demographic’s use of contactless cards, the technology has become more ingrained in the UK’s retail and hospitality sectors.
Younger Generations Prefer Mobile Payments
While older users are leading the charge in terms of adoption, younger generations are gravitating towards mobile payments, especially for larger transactions.
The report reveals that 42% of Gen Z and 33% of millennials prefer using mobile payments for purchases over £100, compared to a smaller proportion opting to use cash (30% of Gen Z and 27% of millennials).
This shift indicates a preference for the flexibility and security that mobile payments offer, particularly among younger consumers who have grown up with smartphones and digital payment solutions.
Barclays’ analysis also highlights a continued rise in the frequency of contactless transactions, with the average consumer using the technology 236 times in 2024, a slight increase from 2023.
This growing reliance on digital payments underscores the ongoing transformation in how consumers handle everyday transactions, with mobile and contactless cards becoming increasingly central to UK shopping habits.
The continued success of Barclays’ contactless payment system serves as a testament to how much the UK’s payment landscape has evolved. As more consumers of all age groups embrace this technology, the future of digital payments looks set to remain a key part of daily life in the UK.
