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Contactless spending in hotels up nearly 200%

22 August 2016 by
Contactless spending in hotels up nearly 200%

Contactless spending in bars and hotels has risen once again as the transaction cap increased from £20 to £30 in September 2015.

The latest Barclaycard Contactless Spending Index showed a surge in touch and go transactions, with the use of contactless technology multiplying by 2.7 times so far this year.

Contactless spending was up overall by 173% in value and 112% in volume in the year to the end of July.

Hotels, motels and resorts saw a 196% increase in contactless spending since the £30 limit, while those designated as ‘drinking places' saw spending up by 209%.

London was ahead of the country with almost one in four of all card transactions of £30 and under now paid for with contactless. But the rest of the country is catching up quickly, with large increases in spending across the board.

Contactless spending in Glasgow was up 291%, Blackpool 288%, Edinburgh 269%, Cardiff 263% and Hull 261%.

Take-up of touch and go continues to be highest among Britain's over-60s, or ‘silver spenders', with the number of users up 114%, more than any other age group. The number of those over 60 using the technology is now greater than those aged 18-25.

Tami Hargreaves, commercial director, digital consumer payments at Barclaycard, said:

"The £30 spending threshold has increased the popularity of contactless payments among both existing and new users, both of whom are now using it more frequently and for higher amounts. No longer is touch and go reserved for the morning coffee or lunchtime sandwich; instead our data shows shoppers are taking advantage of paying quickly and easily for everyday goods and services such as a few drinks after work or a basket of groceries on their way home.

"Retailers are also responding quickly to consumer demand and updating their payment terminals to accept contactless, or even setting up payment technology for the first time. Contactless can now be used at over 400,000 locations across the country, and with the number set to increase further by the end of 2016, we're heading for another record-breaking year for touch and go spending."

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