Iconic British brands finally succumb to contactless
Eventually, even the most stubborn laggard companies have to follow trends if they want to remain profitable and boost sales. One laggard in particular that has been strangely resistant to change over contactless payments has been UK superstore Sainsbury’s. However, with Christmas just around the corner, it may have finally seen the light. At least that was what was expressed on Twitter last week.
Sainsbury’s will launch contactless payments in most of its 800 nationwide convenience stores, becoming the final grocer of the big four to do so. The retailer has announced it plans to roll out the technology ahead of the Christmas trading period, after failing to stick to plans to adopt contactless in the first half of 2016. Sainsbury’s will launch contactless payments in most of its 800 nationwide convenience stores, becoming the final grocer in the big four to do so. The retailer has announced it plans to roll out the technology ahead of the Christmas trading period, after failing to stick to plans to adopt contactless in the first half of 2016.
Although “the majority” of its convenience stores will see the arrival of the technology by the end of the year, no estimated time frame has been given for Sainsbury’s bigger supermarkets. “Our customers will find an expected item in the bagging areas soon – we are in the process of introducing contactless payments in our stores,” a Sainsbury’s spokeswoman said. However, the store also warned that some stores, possibly its larger ones, will have to wait until 2017 to receive the technology.
Another hold out on contactless has been the iconic London black cab, however all that changed last Monday. From Monday 31 October London’s black cabs started taking card and contactless payments. All of them. The move is part of mayor Sadiq Khan’s ambitious Taxi and Private Hire Action Plan, which will make lives easier for those travelling around the city, improve safety and it’s to ensure that London has a world-class taxi and private-hire market where all providers can thrive (says the various news releases).
More importantly, major London taxi driver associations are supporting the new move. Payment devices can be hand held or fixed but by January 2017 they must be fitted into the passenger side of the vehicles. The move comes after Transport for London’s consultation had the support of 86 per cent of people requesting the use of cards in taxis.
Mayor of London, Sadiq Khan, said, “I’m delighted to announce that from next Monday, everyone using our iconic black cabs will be able to pay by card, making their journeys quicker and more convenient. Since becoming Mayor, I’ve been determined to ensure we have a vibrant taxi and private hire market that provides a truly world-class service for Londoners. While many black cab drivers already provide the service, it’s important that Londoners know for certain that they won’t have to run to the cash machine before they start their journey. Our black cabs provide a unique and invaluable service for Londoners and guaranteed card payment will be good for our black cab industry, and good for passengers across London.”
The move will no doubt boost the amount being spent via contactless technologies in the UK. Latest figures show one in five card payments are now made via contactless. Contactless cards were used for 21 per cent of card payments in August 2016, totalling £2.3 billion, figures from The UK Cards Association reveal. In August 2015, they were used for just 7.9 per cent of card purchases. The average contactless card transaction was £8.97 in August, compared to £7.12 in August 2015. The number of contactless transactions increased from 89 million in August 2015 to 260.7 million in August 2016, while the number of contactless debit cards in circulation increased from 74.5 million to 97 million in the same period.
Richard Koch, Head of Policy at The UK Cards Association, said, “Contactless cards have exploded in popularity over the past year and are now being used for one in every five card payments. While more shoppers than ever are using contactless cards for small purchases, we are excited by the possibilities they will bring over the coming years for public transport operators and charities.”
It would appear that as we reach the end of 2016 the final iconic British brands are moving towards contactless as business payment as usual. I look forward to getting some Sainsbury groceries and then taking a cab home - just tapping my card!
Steve Atkins
Contactless Intelligence
