“The latest statistics from the UK Cards Association reveal the increasing popularity of contactless payments over cash. With 140 million contactless transactions made in December 2015, the equivalent of 52 payments every second, it’s fair to say that this method of payment has become a firm favourite among spenders.

“The popularity of contactless payments has been boosted by the influx of cards that are now enabled with the function, with many providers now issuing these cards as standard. Many shoppers will also notice that more retailers are offering terminals that have a contactless option, which speeds up payment at the till.

“Consumers who shop on a frequent basis and make lots of small purchases are increasingly likely to use the contactless option with their cards or smartphones, or even their wristbands in some cases. This is because the limit for contactless spending was raised to £30 from September 2015, which means spenders can use contactless payment to buy most ad-hoc purchases.

“In addition to increasing usage of contactless debit card payment, more and more consumers are becoming wise to the advantages of using their credit cards online. Paying by credit card offers protection from fraud as individual payments of £100 or more are covered by Section 75 of the Consumer Credit Act.

“Technology is forever advancing and providers are keen to invest in mobile use for payment methods, so we are likely to see regular increases in the number of people using their smartphones for banking and shopping in the future.

“As with any spending, consumers should keep a close eye on their transactions and ensure that any credit card debts are paid before interest applies, otherwise they would be wise to take advantage of an interest-free purchase or balance transfer credit card to give them some breathing space while they tackle their debts.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

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