Payment limit on contactless cards raised

4 Sep 2015 01:44 PM

The per-transaction limit on contactless cards has been raised to £30.

As announced in February of this year and effective from 1 September, the per-transaction limit on contactless cards has been raised to £30; up from the previous threshold of £20. For the typical consumer, this means that the average supermarket spend of £25 can now be made by tap and pay.

The use of contactless cards has grown rapidly. According to data released by the UK Cards Association, over £2.5 billion was spent using contactless cards in the first half of 2015. This compares with a total of £2.3 billion for all of 2014. The rapid growth in contactless payments clearly demonstrates that the UK consumer is comfortable and confident with the technology. Speed and convenience, whether on the tube, in the supermarket or in the pub, is a winning proposition with British consumers.

Addressing any lingering concerns about the security of contactless payments, Richard Koch, head of policy at the UK Cards Association, said: "Contactless payments are fast, easy and secure and use the same robust encryption technology as chip and pin..." Losses are less than a penny for every £100 spent, which is lower than overall card fraud. Consumers are also protected by the same rules which govern all card transactions and, in most instances, would be refunded for fraudulent transactions

There is every reason to expect the pace of growth to continue as the issuance of contactless cards, retailers making the option available, access to mobile payments and, in future, the use of wearables, continues to expand. British users, having become used to taping with an Oyster Card, readily made the leap to contactless cards. Whether or not the contactless jacket takes off remains to be seen but, based on ease with which they've taken to contactless cards, British consumers are likely adopters of future payments innovations.