UK's Contactless Prepaid Card Transactions Soar to a Record 21%
UK's Contactless Prepaid Card Transactions Soar to a Record 21% - Says UK Cards Association
Contactless prepaid cards have become 40% more popular in the United Kingdom over the last 3 years. According to a recently published survey by the UK Association, a fifth of card-based transactions are carried out via contactless prepaid cards.
The nationwide findings point to a popular trend on a steady rise - punters are increasingly taking to the safer and more secure methods of payment, said the association in a media statement released two days ago. The new figures are also a revealingly indicative harbinger of the soaring trust people accord plastic money purchases and payments, added the press release.
The trailblazing research found out that contactless prepaid cards have constantly increased in popularity in the last five years. For instance, figures ascertained that this newfound transaction preference accounted for up to 21% of all credit card financial dealing as at 1st August 2016.
This percentage may look rather small but it translates to a whopping £2.3 billion, the organization's user data reveal. Compared to the situation about six years ago, this positive shift is immensely inspiring, say paperless cash pundits from Britain's robust finance sector as well as dozens of observers from around the world.
The association praised the encouraging development that has exponentially spread within the last one year. For example, the umbrella body shows that contactless cards accounted for a mere 7.9% of UK's card financial dealings in August 2015. With an improvement of well over 13 within slightly less than a year, the country is poised to witness an upsurge of plastic money transactions, and an unprecedented boom in the use of the contactless payment forms in the few years ahead.
Richard Koch, the Head of Policy at the association had this to say: “Contactless cards have exploded in popularity over the past year and are now being used for one in every five-card payments.“ The average amount of money transacted by a single individual this year was £8.97, set against an average of £7.12 in August 2015.
Captured in a more telling statistical form, the total amount transacted via contactless prepaid cards was 89 million at the beginning of August 2015, while this figure nearly tripled within a year to stand at 260.7 in August 2016.
Notably, the total count of contactless cards in circulation rose from 74.5 million to beyond 97 million between August 2015 and August 2016. Mr. Koch expressed ebullient wisdom saying that their database indicated that most of the users were common individuals conducting small everyday shopping exercises.
The Policy Head projected an even greater number in the next one year. The top official opined that they looked forward to marketing contactless card payment options to leading stakeholders in the public transport sector as well as key players in the world of charities and non-profits. Indeed, the European economic behemoth has the potential to lure many more punters into the contactless transaction method, if the current inspiring statistics are anything to go by.
The UK Cards Association is an all-inclusive body for card-based transactions in the UK. It represents institutions that operate as card acquirers and issuers. The association's members account for the large majority of credit and debit card issued in the country. The body primarily promotes co-operation among top industry participants with a view to enhancing non-competitive policies of joint interest and upholding mutually binding industry best practices.