A recent report from Barclays has found that in 2023, a record 93.4% of in-store transactions under £100 in the UK were made contactlessly, highlighting a significant shift towards this payment method for its convenience and speed. The average spend per user via contactless rose to £3,623, up 8.9% from the previous year, with the number of transactions increasing to 231 per user. Notably, the adoption of contactless payments surged among those over 65, with 80.1% of individuals between 85 to 95 years old using this technology for the first time.

The trend also sees a growing preference for mobile payments, especially among younger consumers, with 22% of 18 to 34-year-olds opting for smartphone payments over traditional wallets. Despite this, older generations show a marked division, with only 3% of those over 75 preferring mobile to physical card payments.

The Barclays report also points out that while digital and contactless payments are gaining traction across all age groups, traditional methods like Chip and PIN continue to dominate for transactions over £100. However, mobile wallets are increasingly being used for higher-value payments, supported by two-factor authentication for added security.