Increase in contactless payments at Bank of Ireland during Q1 2025, decrease in ATM transactions during the same period
In Q1 2025, Bank of Ireland recorded its busiest day for digital banking logins on Thursday, 27 March, with a staggering 1.5 million logins across its iOS and Android mobile apps. This marked the busiest day in Q1 2025, surpassing the previous record set during the Easter holidays on Holy Thursday in Q1 2024.
The surge in digital banking usage can be attributed to the growing preference for digital and electronic payment methods. This trend is supported by advancements in fintech and payment platforms, making contactless payments more convenient and secure.
The rise in contactless payments is evident in the fall of ATM transactions, which decreased by 11% in Q1 2025 compared to Q1 2024. The shift towards contactless payments is driven by the popularity of digital wallets and NFC-enabled devices, fueled by convenience and health safety concerns stemming from the COVID-19 pandemic.
The increase in contactless usage is not limited to Bank of Ireland. The Irish card payments market is expected to grow significantly in 2025, as consumers continue to favour electronic payments over cash. Fintech companies like Strikepay, which simplify contactless and micro-payments, particularly in services and hospitality, have accelerated the adoption of contactless payments across Ireland.
The trend towards digital banking is reflected in the growth of biometric logins, which increased by 41% for Q1 2025 compared to the same three months in 2024. Contactless eCommerce transactions also increased by 3%, while logins via the traditional '3 of 6' PIN method fell by 10%.
Ciarán Coyle, Group Chief Operating Officer at Bank of Ireland, stated that the bank's continued investment in digital banking services ensures customers can bank with speed and flexibility. Coyle also mentioned that while cash remains popular, customers are embracing seamless and secure ways to manage their finances, with a shift towards digital-first banking behaviours.
Bank of Ireland will continue providing customers with a full suite of banking options, continuously improving the capabilities of their digital banking channels. Despite the surge in digital banking, traditional banking methods are not being abandoned entirely, with contactless 'tap and go' payments rising by 1% in Q1 2025 compared to Q1 2024.
Overall, the factors contributing to this trend include widespread consumer preference for faster, safer, and more convenient contactless payment options, technological innovations making contactless payments easier and more accessible, fintech and payment startups promoting frictionless cashless payment solutions, and the ongoing growth of card payment transactions in Ireland. This confluence of technological, behavioural, and market developments accounts for the rise in contactless payments and concomitant decrease in ATM usage among Bank of Ireland customers in Q1 2025.
- As customers increasingly favour digital and electronic payment methods, the trend towards mobile banking and digital financing is becoming more pronounced, with Bank of Ireland's record-breaking digital banking logins being a testament to this shift.
- The rise in digital banking is inextricably linked to advancements in technology, as fintech and payment platforms facilitate the growth of contactless payments, leading to a decrease in ATM transactions and an increase in the use of digital wallets and NFC-enabled devices.
