The UK’s payment landscape in 2024 has seen unprecedented growth, with both card payments and contactless transactions hitting significant milestones. New figures reveal the increasing adoption of digital payments, with consumers showing a marked shift away from cash in favour of more convenient, quicker options like contactless.
UK Card Payments Top £1 Trillion
According to UK Finance, total card payments in the UK surpassed £1 trillion in 2024, reflecting a continued trend towards cashless transactions and a growing preference for digital payment methods. While overall card spending remained steady compared to 2023, there was a marked increase in transaction volumes, with UK-issued debit and credit cards used for 31.4 billion transactions, a 4% rise on 2023.
The rise in transaction frequency – alongside stable spending figures – suggests consumers are making more frequent, smaller payments, with the average card transaction size continuing to decline. Since 2019, the number of card transactions has increased by 42%, while the total value of these transactions has grown by 26%.
The Dominance of Debit Cards
Debit cards continued to dominate UK spending, accounting for £797 billion of spending, though this represents a slight decline of 0.8% compared to the previous year. Conversely, credit card usage grew, with credit card transaction values rising by 5.3% to £249 billion, driven by increased confidence in credit-based spending.
The continued growth of contactless technology is a clear driver of this shift in consumer behaviour. In 2024, there were 18.9 billion contactless transactions, a 3.4% increase from the previous year. The average value of a contactless transaction rose slightly to £15.86, reflecting both inflationary pressures and the wider use of contactless for everyday purchases.
Contactless Payments Surge to Record Highs
In line with the broader shift towards digital payments, contactless transactions in the UK reached new heights in 2024. According to Barclays’ latest Consumer Spend report, 94.6% of all eligible in-store card transactions were made using tap-to-pay technology, marking a notable rise from 93.4% in 2023. This growth underscores the increasing entrenchment of contactless payments as the default method of in-person payment.
British consumers used contactless cards an average of 236 times in 2024, up from 231 times the previous year, with average transaction values nudging upwards to £16.10 from £15.69. This surge contributed to a 5% increase in per capita contactless spending, reaching £3,803 in 2024, up from £3,623 in 2023.
Older Consumers Embrace Contactless
In an interesting development, consumers aged over 65 have become the fastest-growing adopters of contactless technology for the fourth consecutive year. Now, 84.1% of individuals in this age group use contactless payments, reflecting a broader shift across demographics. Among those aged 61 to 79, 67% of respondents agreed that contactless payments are more convenient than traditional chip and PIN methods.
While mobile wallets like Apple Pay and Google Pay are gaining popularity, particularly among younger consumers, cash usage is still prevalent for payments exceeding the £100 contactless limit. However, mobile payments are now a preferred option for many Gen Z and millennial consumers, especially for transactions over £100.
Industry-Specific Trends and Growth
The uptake of contactless payments varied by sector, with motoring leading the way, showing a 19.4% annual growth in contactless spending. Other sectors, such as general retailers, furniture stores, and travel-related spending, also reported strong contactless growth. On the other hand, discount retailers experienced a slight decline in contactless payments, suggesting a possible return to more traditional payment methods among price-sensitive consumers.
As the UK payments landscape continues to evolve, contactless payments are now seen not just as a passing trend, but as a permanent feature of modern retail. The growing preference for frictionless, seamless payment methods aligns with the increasing demand for self-service checkouts and the overall shift towards more convenient shopping experiences.
A Permanent Shift in Consumer Habits
The data indicates a clear trend: UK consumers are increasingly opting for frequent, low-value transactions, often made via contactless payments. As mobile payments and digital wallets continue to gain traction, the transformation of how Britain pays is progressing at a rapid pace, making cashless transactions more integrated into daily life.
With UK card payments topping £1 trillion in 2024 and contactless transactions becoming the dominant method of in-store payments, the future of the UK’s payments system is unmistakably digital. The latest figures highlight not only the continued rise of contactless payments but also a profound shift in consumer expectations, with convenience and speed at the forefront of the evolving retail landscape.
