Data from Lloyds Bank has found that spend on debit cards made in person using contactless technology has soared from 65% to 87% in the last three years.
According to Lloyds, the rise in contactless payments as a preferred method has been driven by restaurant and health and beauty purchases, which both see around 90% of face-to-face card payments made with a tap of the debit card.
The data found restaurants saw 93% of contactless payments, health and beauty 90%, department and online stores 89%, supermarkets 86%, hardware 85% as well as clothing at 80%.
Furniture accounted for 77% of contactless payments, electrical 68% and average retail came in at 87%.
Lloyds was the first bank to allow customers to choose their own contactless limit for spending – between £30 and £95 – on a debit or credit card.
Since this feature was introduced in autumn 2021, 800,000 debit card customers have used it to freeze contactless payments, or choose an alternative limit.=
Over half (60%) of debit card customers who have set their own limit have opted for one under £50. A further quarter (25%) have set the highest bespoke limit of £95.
Lloyds Bank payments director Gabby Collins said, “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. 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.”
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