Pubs and bars feeling surge of mobile payments

Pubs and bars feeling surge of mobile payments

Quick service merchants, including pubs and bars, are feeling the surge in popularity of mobile payments most, according to data released by Cardlytics.

The data also found that the uptake of smartphone payments such as Apple, Google and Android Pay in the UK has quadrupled over the last two years.

As a proportion of total payments, mobile transactions in the UK have jumped from 1.3% in Q3 2016 to 5.6% in Q3 2018, representing an overall increase of 331%.

Compared to this time last year, mobile payments have increased by 60%.

The data comes amid growing popularity among consumers as retailers become increasingly willing and able to accept mobile payments.

In the contactless £30 range, the number of transactions accounted for by mobile payments increased from 1.8% in Q3 2016, to 4.6% in Q3 2017 and then 7% in Q3 2018.

As expected, London is by far the biggest adopter of mobile pay, accounting for 7% of payments less than £30 and 5.7% of all transactions – at least 2% higher than any other region.

“The huge growth in contactless payments has been well documented, and we’re now seeing mobile payments making a big contribution to that growth, often at the expense of cash,” says Duncan Smith, commercial director at Cardlytics.

“Having a broader view of consumer spending in categories that were previously cash-heavy allows us to provide more relevant rewards at places where consumers prefer to shop.

“This is also a big opportunity for banks because by offering these rewards through their native channels, we are helping to build loyalty and increase share of wallet.”