Tap-and-go cards overtake chip and PIN in shops for the first time

Shoppers using chip and PIN cards in shops have been eclipsed by those paying by tap-and-go technology for the first time, data shows.

Until now chip-and PIN cards have been the most common way to pay in stores but now time-saving contactless technology has taken over. 

Analysis of payment provider Worldpay's own data found that in June 51 per cent of all card payments in shops were by tap-and-go cards, up from 50 per cent in May.  

Fashion retailers saw the greatest shift from Chip and PIN to contactless, with four times as many payments year-on-year increase, the data showed.

Mobile contactless payments, including Apple Pay, also rose significantly in the clothing and footwear sector, up by almost five times over the past year. 

Betting shops and department stores also saw significant growth of mobile contactless payments.  

Steve Newton, executive vice president at Worldpay, said: “The data clearly shows that shoppers are moving towards more convenient forms of payment. This aligns to what we’re seeing in a number of sectors: time-poor consumers want instant access to their goods.

"Whether buying clothes or booking holidays, speed and ease are the watch words for meeting consumer expectations. The popularity of online shopping, mobile payments and click-and-collect is testament to this.

“The rise of contactless is part of a bigger story: it’s not simply about tap and go – it’s about convenience and reducing the parts of the shopping experience that customers find irritating, like queuing and waiting to pay.

"Over 50 per cent of shoppers believe that their phones could replace their wallets within the next five years - the phenomenal growth of mobile contactless is a leap along this path.

"With the added benefit ‘limitless’ transactions and biometric security offered by mobile wallets, our smart phones could be the key to the next frontier of frictionless commerce.”