Pub chain Slug and Lettuce has rolled out Barclaycard payment terminals to support contactless payments in 80 of its pubs across the UK.
The pub chain, part of The Stonegate Pub Company, previously trialled contactless payments for purchases of under £15 in four of its London pubs and processed 1,500 contactless transactions using Barclaycard terminals within a month.
"The move to contactless will mean an end to handling and processing soggy bank notes. Instead customers can pay for goods and services by holding their card on a reader, without the need to enter a PIN or sign their name," said George Wright, head of marketing for The Stonegate Pub Company.
A total of 61% (2.5 million transactions) of the pub company's annual card transactions are below £20.
"Currently, the average transactional value at Slug and Lettuce is £8.89, making contactless the ideal form of payment for a quick lunch break," Wright added.
The Stonegate Pub Company also plans to roll out contactless payments across its Yates, Litten Tree and Hogs Head pub chains in the near future.
Contactless payments a growing trend
Payments firm Visa Europe expects the number of contactless cards being used in the UK to reach 20 million by the end of 2011 - double 2010 numbers.
Several retailers have deployed contactless terminals for purchases below the value of £15, including the Co-operative food store and food chains Eat, Little Chef and Pret A Manger.
In addition, McDonald's contactless payment technology recently went live across all 1,200 of its UK restaurants. Starbucks signed a deal with Barclaycard at the end of May 2011, in partnership with Visa Europe, to introduce contactless payments to its coffee shops from mid-2012.
Quick Tap mobile phone payments
Barclaycard also launched the UK's first near-field communication (NFC) mobile payment system with Orange in May 2011.
The "Quick Tap" payment system can be used via Orange's NFC-enabled Samsung Tocco Lite handset and allows customers to pay for items under the value of £15.
A recent study from Juniper Research shows the total value of mobile payments for digital and physical products, money transfers and NFC transactions will reach $670bn by 2015, up from $240bn this year.