By Jack Mendel
Face-to-face transactions in cash are near to becoming extinct, as the pandemic-driven shift to convenient contactless takes hold.
New figures from Lloyds Bank claims there has been a huge spike in the use of payments on debit cards rising from 65 per cent in June 2019 to 87 per cent in 2022.
The move away from cash was accelerated by various lockdown restrictions and social distancing rules, with the contactless limit rising from £30 to £100 by October last year.
A whopping 93 per cent of restaurant transactions are made in contactless, while 90 and 89 per cent are made in department stores, and health & beauty purchases.
Supermarkets, hardware and clothing are all between 85-80 per cent, while larger items such as furniture and electrical goods tend to have a lower percentage.
Lloyds says 800,000 debit card customers have set their own contactless spending limits, while 60 per cent have set a limit of under £50.
“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”, said 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.”
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