Despite a slow start, contactless payments have dramatically taken off in the UK over the past 2 years, making it one of the fastest growing markets in the world. In fact 2015 was the first year in which cash usage slowed to the extent that it was less than 50% of all total transactions by volume for the first time in the UK. According to Payments UK, card transactions will exceed cash transactions in the country by 2021.
In June 2016, the UKCA (UK Cards Association) announced that the amount spent by UK consumers using 'contactless' payment methods had outstripped last year's total by the end of June; ie around £9.27 billion ($12.3 billion) was spent over 1.1 billion transactions during H1 2016 using contactless cards and mobile devices. By the end of 2016, the contactless payment transaction value had soared to £25.2 billion ($34 billion), more than doubling from £7.7 billion ($11.8 billion) reported for the 12 months ended December 2015; 2.9 billion contactless transactions made in 2016
Given the digital adoption in markets such as the UK, there is great opportunity for the charity sector to utilise contactless payments and digitise transactions.
In the UK and Ireland, for example, Visa is working with organisations to trial charity donation boxes fitted with contactless readers. According to Barclaycard, 11 charities began a 4 month trial in September 2016 using 100 of the contactless boxes. It was also reported that consumers using contactless credit cards paid 3 times as much as the average cash donor. Average transactions were reported to be around £3.07 ($3.82), compared to £1.00 ($1.24) average cash donations.
Juniper believes that charity boxes along with other initiatives already in places such as bars and restaurants, will continue to grow at an incredible pace alongside the mobile contactless payment segment.
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