Contactless payments have become so popular among UK customers, that they accounted for half of all debit card transactions in July.
It is the first time in history that more than half of all transactions were from contactless, according to figures from banking trade body UK Finance. In case you don’t know, contactless allows consumers to pay by placing their card, or smartphone, near the merchant’s machine, without the need to enter a PIN.
It was used 647 million times on debit cards during the month, the data shows.
Credit: BBC news
There have been concerns surrounding the use of debit and credit cards as oppose to cash. A move like this would definitely result in negative impacts in poorer communities, and small businesses.
Iona Bain, founder of the Young Money Blog, said: “The jury is out about what this means in the long-term for consumers.
“We have to think about the unbanked customers in the UK. They are very much reliant on cash. The rise in contactless technology risks leaving behind rural and poorer communities.”
