Increase in Contactless Payments at Bank of Ireland in Q1 2025, Decrease in ATM Transactions During the Same Period
In the first quarter of 2025, Bank of Ireland witnessed a significant shift in customer preferences, with an increasing number of people opting for the speed, convenience, and security of mobile banking and contactless payments.
Despite Easter coming later in the year, the busiest day in Q1 2025 was not during the Easter holidays. Instead, on Thursday, 27 March 2025, 1.5 million digital banking logins were recorded across Bank of Ireland's iOS and Android mobile apps, marking the busiest day in Q1 2025. This trend is a clear indication of the growing popularity of digital banking services.
The increase in contactless payments and the decline in ATM usage at Bank of Ireland in Q1 2025 are primarily driven by evolving customer preferences. Consumers increasingly prefer contactless payments due to their speed, ease, and safety, which reduces the need for physical cash withdrawals via ATMs.
The number of ATM transactions fell 11% in Q1 2025 compared with Q1 2024, while contactless 'tap and go' payments rose by 1%. The decrease in ATM usage was partly due to the Easter period not falling in the first quarter of 2025.
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 seamless and secure ways to manage their finances, with a shift towards digital-first banking behaviours.
The continued growth in digital banking usage at Bank of Ireland highlights the evolving preferences of many of their customers. Logins via the traditional '3 of 6' PIN method fell by 10% in Q1 2025 compared to the same three months in 2024. In contrast, digital logins to Bank of Ireland's Mobile app increased by 1%.
Moreover, Bank of Ireland recorded over 12 million biometric logins in total during January, February, and March 2025. Biometric logins to the mobile banking app increased by 41% in Q1 2025 compared to the same three months in 2024.
Coyle also mentioned that Bank of Ireland will continue providing customers with a full suite of banking options, while improving the capabilities of their digital banking channels. The bank will also invest and provide enhanced services across their branch network.
The rise of fintech solutions, like Bank of Ireland’s support for contactless infrastructure, aligns with broader shifts in the payments ecosystem, where mobile and digital payment methods are becoming dominant. This trend is influenced by consumer behaviour, economic and strategic factors, digital transformation, and fintech, as well as concerns about security and fraud. Despite some growth in digital payment fraud in Europe, customers seem to trust contactless payments due to strong security measures implemented by banks like Bank of Ireland.
In conclusion, Bank of Ireland's Q1 2025 data reflect a customer preference shift driven by the convenience, speed, and security of contactless payments, leading to reduced ATM usage as cash declines in everyday transactions.
The increasing trend of contactless payments and mobile banking is rooted in the finance industry's technological advancements, with Bank of Ireland's mobile app witnessing a surge in logins, marking a significant move towards digital-first banking behaviors. As customers prefer speed, ease, and safety over traditional methods, the decline in ATM usage is expected to continue.
As Bank of Ireland invests in and improves their digital banking channels, they aim to provide a full suite of banking options, including mobile banking, while also reinforcing the security of these services to build customer trust in the shift towards digital finance.
