Ever noticed that most takeaway restaurants with an FAQ section have “do you take contactless?” quite high up? It’s because a lot of people use contactless, and restaurants/takeaways up and down the country are taking steps to accommodate this to avoid losing business.
How big is contactless?
After an initial slow start upon release, the UK market has seen a huge rise in contactless payments over the years. Cards overtook cash payments last year, due to the fact it’s the easiest way to pay on the go. From there, the even more convenient tap-and-go method is rising steadily.
2014 was a big year for contactless and might’ve been the point where people realised that it wasn’t just a flash in the pan. Total contactless spending reached an all-time high, setting a record of £2.32 billion according to the UK Cards Association – a 255% increase from the previous year’s spending.
In December 2014, there were 58m contactless cards in use in the UK. Worldpay reported a 50% increase in contactless use from November 2014 to May 2015. This means that not only is it incredibly popular, but it’s also growing at a huge pace year on year.
UK Finance reported a statistic to prove this. By the end of 2017, nearly 119 million contactless cards were issued in the UK, almost two cards per person. This has, of course, slowed down as more or less everybody owns one at this point, but use is still rising.
In June 2018, the contactless payments finally overtook chip and PIN payments. According to Worldpay, 51% of all card payments in-store were using this payment method, rising by 1% the next month.
On top of this, Visa and Mastercard also announced that they will require all card machines to accept contactless within the next year.
Summarised, it doesn’t look like it’s going away any time soon.
How would it benefit me?
A Paymentsense report conducted in 2017 revealed a steep increase in contactless payments across a variety of merchants between October 2016 and March 2017, with takeaways and restaurants being two of the fastest growing industries for on-the-go customers.
Across the board, merchants had seen their contactless sales increase far more than their other card transactions. This data suggests that it may not be something businesses can simply overlook anymore, as chip and PIN may not be enough.
The fastest-growing industry in the UK is the bakery, with a whopping 62.5% of purchases being made through contactless. This is followed by pubs/bars with 48.2%, caterers with 47.8%, takeaways with 45.5% and newsagents with 44.9%. In 6th and 7th, sit-in restaurants boast 42.7%, and confectioners’ transactions are 39.9% contactless.
This data reveals that generally, it’s beneficial to accept contactless if you’re a business that people will pop into, especially a place that serves food or drinks.
When it comes to accepting payment methods, it’s “the more the merrier”. That being said, if there’s one change you can make, we recommend the one that’ll take up half of your transactions.
Need any help implementing this?
CheaperPay can help. Visit https://www.cheaperpay.me/request-a-quote/ to get a free quote!