The figures behind contactless card payments across the globe
When contactless card payments were first introduced in a limited capacity, few could have predicted the rate at which the technology would be welcomed worldwide. Today, contactless card payments are the preferred choice of billions of spenders, thanks to their convenience, speed and security.
But to precisely what degree have contactless card payments dominated the payment landscape across the globe, and is it a wise move for businesses that are yet to embrace contactless to finally utilise the technology?
Here are some of the figures behind contactless card payments around the globe.
What percentage of payments are made with contactless cards?
In a very short space of time (less than a decade) contactless card payments have become the go-to choice for the majority of consumers. 91.2% of all eligible card payments were made using contactless technology in the UK in 2022, according to data from Barclays bank. The data also states that this figure is a rise of 50% from the previous year.
Even though contactless payments – and payments as a whole – may have been affected by the fallout of COVID-19, this figure still indicates a massive preference in the general population towards contactless payments. In a world where people value convenience and quickness above all else, this should come as no surprise.
83% of customers say convenience while shopping is more important to them than it was five years prior, according to a piece by the National Retail Federation. Given that contactless card payments are up to ten times faster than traditional chip and pin payments – according to a study by payment card giant Mastercard – the reasoning behind the trend towards contactless card payments couldn’t be clearer.
Which countries use contactless card payments the most (and why)?
China is the world’s largest user of contactless card payments, with 86.81 billion contactless card transactions in total as of 2022, according to data from Statista. Given that China possibly has the largest population of any country on the planet – the only other country that could claim the title is India, though precise numbers are currently unclear – it shouldn’t come as a shock that they utilise contactless payments more than any other country.
However, the disproportionate level at which they use contactless payments when compared to other countries may come as a surprise, with China making four times the number of contactless payments than the nearest competitor, the United States, according to the same data from Statista.
One reason could be that, as generations have moved forward into the 21st century, Chinese citizens have shifted away from more traditional processes and have become more open to the advancements offered by new technology, like contactless card payments. According to an article featured on Harvard Business Review:
“(China)… has developed an astonishing propensity for adopting and adapting to innovations, at a speed and scale that is unmatched elsewhere on earth.”
This may explain why the country is so much further ahead than others when it comes to contactless payments. But there may also be a much simpler answer; looking at current estimates regarding the global population, the population of China is around four times that of the United States, which would account for the four-times-larger usage of contactless card payments.
Which countries are lagging behind with contactless card payments?
Despite the fact contactless card payment technology has been readily available for years, some countries are yet to take full advantage. Romania, for example, is still home to a very cash-heavy society, with apparent reluctance among the population to adopt contactless. In the months leading to the COVID outbreak, 45% of transactions were still made with physical cash – much higher than many other countries in the developed world – according to data from Statista. But even after the outbreak, cash usage for transactions only dropped to 21%, while some countries approached a 0% statistic for this period.
However, other figures could offer some reasoning for this anomaly. Only 69% of eligible adults in Romania have a bank account, according to data from The Global Economy, which still leaves a very large percentage of the population only dealing in physical cash, leaving them completely unable to utilise contactless card payments. That’s in comparison to the same figures from 2011, which show that only 44% of Romanians held a bank account at this time. Even with the increase in bank account numbers, this slow rise would indicate either a cultural preference towards physical cash or a lack of accessibility for many Romanians to use card and bank services – both of which explain the country lagging behind many others in the contactless space.
Should your business adopt contactless card payments?
While some countries (like Romania) are yet to completely embrace contactless card payments, those that have are seeing their businesses reap the benefits. 47.2% of respondents cited convenience as their primary reason for using contactless payments, according to a report by customer service and advertising experts Radiyant. In a world where convenience is king, the more convenient you can make the shopping experience for a customer, the more likely they are to shop with you – there’s no doubt contactless card payments accomplish this.
So if you’re looking to finally bring contactless card payments into your business to delight your customers, be sure to choose a reputable and reliable contactless card machine vendor.