Contactless payments becoming commonplace

12 October 2016

Card payments

Contactless payments continue to grow rapidly across all demographic groups, at an increasing number of shops and for increasingly large amounts. This is shown by measurements by the Dutch Payments Association and De Nederlandsche Bank (infographic in Dutch).

Infographic about the growth of tap-to-pay: milestone 500 million transactions, increasing monthly figures 2015–2016 and largest share among supermarkets. The infographic “tap-to-pay increasingly popular” reports that more than 1 in 5 PIN transactions are contactless and that the milestone of 500 million contactless transactions has been reached. The left shows a graph with monthly contactless PIN payments (Jan 2015–Sep 2016) that are increasing significantly; an orange cumulative line rises and exceeds 500 million in 2016. On the right, a donut chart shows the share per sector: supermarkets 45%, catering and vending/(candy) vending machines 19%, catering (and recreation) 15%, retail food and pleasure 6% and other 16%. At the bottom it states that payments above €25 (with PIN code) will increase from 5% in 2015 to 8% in the 1st half of 2016.

Contactless payments grew by an average of 10% per month in 2016. More than half a billion contactless payments have now been made in the Netherlands. September saw 65 million contactless payments, representing more than one in every five debit card payments that month.

For larger amounts

While contactless payments were initially used mainly for small amounts up to and including €25 without a PIN, they are now increasingly used for amounts above €25 with a PIN. In 2015, amounts over €25 accounted for 5% of all contactless payments. In the first half of 2016, this share had already increased by more than half to 8%.

In catering and at vending machines

Contactless payments can now be made at more than half of all points of sale in the Netherlands, and that number is growing each month. Several major supermarket and department-store chains recently replaced their payment terminals with contactless models.
Supermarkets account for the largest share of contactless payments at 45% of the total. Catering, including workplace canteens, and vending machines for products such as sweets, snacks and soft drinks account for almost one-fifth of all contactless transactions. Car parks are seeing rapid growth in contactless payments as more contactless terminals are installed.

More women and older people

Differences in the popularity of contactless payments between men and women and between age groups are narrowing. Last year, women made only 38% of all contactless payments; in the first half of 2016, women already accounted for 43% of contactless users.

Older people are also becoming convinced of the convenience and security of contactless payments. Small amounts up to and including €25 usually require no PIN, so pickpockets cannot observe it being entered. Users also no longer need to hand over a contactless debit card, making it less likely that they will forget or lose it. If a debit card nevertheless falls into someone else’s hands and is used to make contactless payments without a PIN, the customer’s bank reimburses the losses.