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Contactless Payments in 2025: Why Your Business Can’t Afford to Miss Out 

Contactless payments are now the default way customers want to pay in the UK. If your retail, hospitality, or service business still treats contactless as a nice-to-have, you are leaving sales and loyalty on the table. In this guide, we break down what contactless payments really mean in 2025, why adoption keeps climbing, the practical benefits for busy teams, and simple steps to get set up with Swipex Pay’s fast, simple, secure solutions.

What Are Contactless Payments in 2025?

Contactless payments use near field communication (NFC) so customers can pay by tapping a card, phone, or wearable on a compatible reader. No PIN for most low-value transactions, minimal friction for higher values with biometric or passcode approval on the shopper’s device. In 2025, contactless payments cover debit and credit cards, digital wallets like Apple Pay and Google Pay, and tap to pay on smartphones that work as card readers.

For merchants, the important bit is simple. Contactless payments shorten each transaction, reduce queue stress, and meet customer expectations at the till and online, all while keeping security tight.

9 Proven Advantages of Contactless Payments

1) Faster queues, happier customers

Every second counts when there’s a line. Contactless payments cut out PIN entry for most transactions and approve wallet payments in a tap. That means you can serve more customers per hour, reduce walk-offs, and keep staff calm when it’s busy.

2) Higher conversion and average order values

When checkout is fast, more baskets make it to payment. Wallets also make it easy to approve slightly larger purchases on the spot. Contactless payments remove friction that often causes last-second drop-offs, both in-store and at the table.

3) Secure by design

Contactless payments use tokenisation and dynamic cryptograms so card details are never shared in plain text. Wallets add biometric checks like Face ID and fingerprint. With Swipex Pay, you get strong encryption, PCI-ready tech, and risk controls that protect your business while keeping payments smooth.

4) Lower operational costs

Shorter interactions reduce staff workload and queue management overhead. Fewer keypad-related failures mean fewer re-tries. Contactless payments also minimise chargeback risks tied to manual entry mistakes.

5) More ways to pay

Cards, phones, watches, and tap to pay on iPhone give customers choice without extra complexity for your team. The wider your acceptance, the fewer lost sales you see. Contactless payments are now the expected baseline in the UK market.

6) Mobility for pop-ups, events, and deliveries

With portable card machines or tap to pay on iPhone, you can take contactless payments anywhere: market stalls, kiosks, food trucks, and at-table in busy restaurants. No cables required, no special setup at each location.

7) Consistent service during peak hours

Contactless checkouts keep lines moving when demand spikes. That steadiness improves staff morale and the customer experience, which in turn boosts reviews and repeat visits.

8) Future-proof compliance posture

Modern terminals and wallet flows bake in strong security and help you meet scheme rules. Swipex Pay stays on top of updates so you do not have to. Contactless payments keep you aligned with customer expectations and card network standards.

9) Smarter data for better decisions

Contactless payments feed clean transaction data into your back office, so you can track peak times, top products, and repeat behaviour. Use that insight to adjust staffing, pricing, and menus in ways that actually move the needle.

If you are still weighing contactless payments, the adoption curve says it all. UK Finance reports that 18.3 billion contactless payments were made in 2023 and 38% of all UK payments were contactless, with 85% of people using contactless at least once a month. Mobile wallet registration climbed to 42% of adults, with a third using mobile contactless monthly. (According to a report by UK Finance: https://www.ukfinance.org.uk/system/files/2024-07/Summary%20UK%20Payment%20Markets%202024.pdf)

Barclays’ Consumer Spend data shows 94.6% of all eligible in-store card transactions were contactless in 2024, a new record. Over-65s were the fastest-growing user group for the fourth year running. (According to Barclays News: https://home.barclays/news/press-releases/2025/04/barclays-data-shows-contactless-spending-broke-new-record-in-202/)

Apple’s Tap to Pay on iPhone expanded acceptance by turning iPhones into secure, certified readers, removing hardware barriers for micro and small sellers. (Apple Business: https://www.apple.com/uk/business/tap-to-pay-on-iphone/)

Bottom line: contactless payments are the norm across age groups and regions. Customers expect to tap and go.

How Contactless Payments Work, in Plain English

  • The tap: Customer taps a card or phone near the terminal.
  • The handshake: NFC sends a one-time cryptogram. Wallets never share the real card number.
  • Authorisation: The terminal routes the request through the processor and card network to the issuer.
  • Approval: The issuer checks funds and risk, then approves in seconds.
  • Receipt: You can print, text, or email it. Tips and surcharges are handled per your setup.

Because contactless payments use tokens and dynamic data, they are resistant to skimming and replay attacks. Wallets add device-level security and biometrics for extra assurance.

Where Contactless Fits: Retail, Hospitality, and Services

Retail: Speedy checkout, fewer abandoned baskets, and easy queue busting. Portable readers let staff serve customers on the shop floor.

Hospitality: At-table payments move orders faster, cut bar congestion, and reduce bill-split headaches. Contactless payments are ideal for quick-service counters and delivery handoffs.

Services: From salons to tradespeople, contactless payments cut admin time and missed invoices. Tap to pay on iPhone means you can accept payment right after the job, no delays.

Choosing the Right Setup With Swipex Pay

Swipex Pay focuses on fast, simple, secure acceptance for UK businesses. Pick the mix that suits your operation:

Countertop terminals for fixed locations

Best for busy retail and hospitality tills. Reliable, ethernet or Wi-Fi, with contactless payments as standard. If you want always-on performance at the main point of sale, this is your workhorse.

Ready to modernise your till points with secure, high-speed acceptance? Explore Card Machines.

Portable card machines for queue busting and at-table service

Battery-powered terminals with Wi-Fi or 4G let staff take contactless payments wherever customers are. Perfect for cafés, restaurants, and garden centres.

If you run events, markets, or provide table service, our portable options will keep you moving. See Card Machines.

Tap to Pay on iPhone for lean setups

Turn compatible iPhones into certified readers. No extra hardware, great for micro-merchants, pop-ups, and delivery teams. Apple’s solution supports contactless payments from cards and wallets, with a familiar, secure experience for shoppers. (Learn more from Apple: https://www.apple.com/uk/business/tap-to-pay-on-iphone/)

Online checkout with wallet support

If you also sell online, add Apple Pay and Google Pay at checkout to mirror the in-store tap. That keeps brand trust consistent and reduces drop-off.

Want a checkout that is fast and trusted? Explore Online Checkout.

One provider, clean reporting

Using Swipex Pay for both in-store and online contactless payments gives you unified reporting, consistent settlement, and a single support team that knows your setup end to end.

To streamline your transactions with a payment solution that is both fast and secure, get in touch with the Swipex Pay team for a free quote today.

Step-by-Step: Enable Contactless Payments With Swipex Pay

  1. Scope your needs
    List your sales channels, average transaction values, busiest hours, and connectivity at each site. Decide if you need countertop, portable, or tap to pay on iPhone, plus an online checkout.
  2. Choose your hardware mix
    • Fixed tills: countertop terminals.
    • Mixed service or at-table: add portable devices.
    • Micro and pop-ups: tap to pay on iPhone.
      All support contactless payments out of the box.
  3. Add wallets everywhere
    Enable Apple Pay and Google Pay in-store and online. This keeps your brand experience consistent and cuts friction for returning customers.
  4. Configure tips, surcharges, and receipts
    Swipex Pay can enable tip prompts, digital receipts, and VAT-friendly reporting. Keep the flow simple so staff can learn it in minutes.
  5. Train your team
    A quick run-through on tap prompts, refunds, and receipt options is usually enough. Create a simple “what to do when a transaction fails” playbook.
  6. Go live and monitor
    Track queue times, approval rates, and peak hours. Use your dashboard to spot bottlenecks and refine staff rosters.

Need tailored guidance for your sites? Book a free consultation and we will recommend the ideal setup.

Common Questions From UK Merchants

Are contactless payments secure enough for higher values?
Yes. Wallet payments include biometric checks, and card-scheme limits adjust with risk controls. For larger values, the customer’s bank or wallet asks for validation.

Do I still need chip and PIN?
You should keep it available for edge cases, but expect most customers to choose contactless payments first.

Will staff training take long?
Not at all. The flow is straightforward. Most teams are comfortable after a short session.

What if I sell online too?
Add wallets to your online checkout and keep the approval flow consistent. Customers recognise Apple Pay and Google Pay and trust the process.

What does “tap to pay on iPhone” change for me?
It removes the need for dedicated hardware for many use cases. It is ideal for pop-ups, pop-in services, or line-busting in peak periods. (Apple overview: https://www.apple.com/uk/business/tap-to-pay-on-iphone/)

Final Word: Act Now, Not Later

Contactless payments are not a trend. They are how UK customers expect to pay today. The speed, security, and flexibility lift day-to-day operations in ways your team and your customers will feel immediately. Whether you need countertop devices, portable readers for at-table service, tap to pay on iPhone for pop-ups, or an online checkout with wallets, Swipex Pay makes it fast, simple, and secure to get started.

Additional Sources and Insights

About this article:
This guide is written for UK retailers, hospitality operators, and service businesses that want clear, practical steps to implement contactless payments without headaches. If you would like help mapping the right setup to your sites, talk to Swipex Pay and get a plan you can put into action this week.

contactless payments