Lloyds Bank has underlined the digitalisation of the UK payment sector, with the pandemic ‘fundamentally changing’ how consumers spend their money.
According to the firm’s latest report, the significant shift to contactless payments is here to stay following the pandemic, whilst almost half of all spending now takes place online.
Gabby Collins, Head of Payments at Lloyds Bank, stated: “The pandemic has fundamentally changed where and how we have spent our money over the last 12 months.
“One of the most visible effects of non-essential shops, pubs and restaurants being closed is the huge shift to online. Businesses have adapted to meet consumer demand, meaning over half of all spending is now online, up from just 38% in the months before. When we have shopped in store, it’s been 1km closer to home in a boost to local high streets.
“Looking ahead, as the vaccine continues to be rolled out across the UK, those businesses who have welcomed few, if any, visitors will be willing a smooth opening by June. We know that demand is there; spending on holidays alone spiked 109% on the announcement of the government’s roadmap out of lockdown.
“We’ll have to see whether online spending behaviours set in once people are given the opportunity to visit their favourite places again. We think we could see a spending spree, when people are reunited with friends and family.”
