Brits turn their back on cash during lockdown as contactless payments jump to £957m
The average Brit has gone 44 days since using cash as new research reveals lockdown has accelerated the pivot to contactless payments.
Customer data from Nationwide shows that tap-and-pay transactions have increased 44 per cent since the week of 23 March, when Britain was placed on lockdown.
Nationwide members made 78.5m contactless between 23 March and 31 May worth £957m. In the first week of lockdown, 7.15m contactless payments worth £77.27m, growing to more than £128.13m with more than 10m payments, in the week beginning 25 May.
The building society’s research, which polled more than 2,000 people, showing the extent of the change. More than a quarter have gone two months or more without using cash. For some, it’s even longer as nearly a third say they do not remember what they last bought without cash.
There were some significant regional differences in the period, with the South East leading with 14.48m contactless payments, compared to ust 7.39m in Scotland and Northern Ireland.
There has also been a greater uptake of contactless payments among the over-55s, with three quarters saying they have decreased cash usage. This compares to just 48 per cent of those between 16 and 24, and 57 per cent of 35-44 year olds.
The adoption of contactless payments will likely outlast the pandemic has half of respondents say they will use cash less in future, and 27 per cent say they will shop online more in future. It is in part because of fears around using cash during a pandemic. One in five people have cleaned their cash because of concerns around coronavirus, with 58 per cent using antibacterial wipes.
Head of payments Mark Nalder said: “Far from heralding the death of cash, a shift towards mobile payments and online and mobile banking will help people keep track of their spending and better manage their money.”
“Although we don’t expect cash to return to pre Covid-19 levels, it is highly likely cash usage will increase post-lockdown as the high street begins to reopen, even if that means the use of card payments – via contactless, phone or another device – rise in tandem.”