Increased usage of contactless payments observed at Bank of Ireland in Q1 2025, concurrent reduction in ATM transactions during the same period.
In the first quarter of 2025, Bank of Ireland witnessed a significant increase in digital banking and contactless payments, setting new records for the period.
On 28 February 2025, over 3 million contactless payments were made, marking the busiest day during Q1 2025. This surge in contactless payments came alongside a 1% rise in 'tap and go' transactions compared to Q1 2024.
Meanwhile, on Thursday, 27 March 2025, 1.5 million digital banking logins were recorded on Bank of Ireland's mobile apps, setting the record for the busiest day in Q1 2025. Digital logins to the mobile app increased by 1% for Q1 2025 compared to Q1 2024. Over 12 million biometric logins were recorded in total during January, February, and March 2025, indicating a growing preference for secure digital banking methods.
The increase in contactless payments and digital banking usage is primarily due to changing customer behaviour, favouring convenience and safety, along with technological and market trends supporting electronic payments.
Customer behaviour shifts have been a key driver of this trend. Analysis shows a growing preference for contactless payments, with ATM usage declining by 11% in Q1 2025 compared to Q1 2024. The trend towards contactless payment was accelerated during the pandemic and continues due to consumer habits and safety considerations.
Market growth and digital card adoption are also significant factors. Ireland’s card payment market is forecast to grow by 8.7% in 2025, driven by increasing consumer spending and preference for electronic payment methods.
Ireland’s vibrant fintech ecosystem, boosted by government initiatives and increased venture capital investments in 2025, is fostering innovation in payment solutions and digital banking, facilitating easier access and adoption. Payment technologies such as SoftPOS (Software Point of Sale) are expected to further boost contactless payments by enabling merchants to accept digital payments without physical terminals.
Ciarán Coyle, Group Chief Operating Officer at Bank of Ireland, stated that the bank's investment in digital banking services ensures customers can bank with speed and flexibility. Coyle noted that while cash remains popular, customers are embracing digital-first banking behaviours and shifting towards more secure digital banking methods.
Looking ahead, future trends are likely to continue and deepen this shift. These include the expansion of digital wallets and mobile payment acceptance linked with broader fintech infrastructure growth, increasing adoption of embedded finance and regtech, and continued decline in cash and ATM usage.
Growing integration of AI and cloud-based tools in banking customer services is expected to enhance convenience and personalization, while regulatory support encouraging innovation and competition in payment services will further drive growth and digital transformation in the sector.
In summary, Bank of Ireland’s rise in contactless payments and digital banking usage in early 2025 reflects broader global and Irish market dynamics, customer preference evolution, and fintech-driven innovation, with strong expectations for ongoing growth and digital transformation ahead.
- The surge in digital banking usage, as evidenced by the record 1.5 million logins on Bank of Ireland's mobile apps, and the rise in contactless payments, indicating a 1% increase compared to Q1 2024, highlight the growing preference for secure and convenient digital finance options in business transactions.
- As Ireland’s fintech ecosystem matures, driven by government initiatives and increased venture capital investments, industry trends such as the growing adoption of digital wallets, mobile payment acceptance, embedded finance, and regtech are likely to further catalyze digital banking, contributing to ongoing growth and transformation in the finance sector.
