Growing Popularity In Contactless Payment Cards Propels Spending Limit To £30 From September 2015.
The growing popularity of contactless payments in the UK has propelled the spending limit on contactless cards to be raised to £30 from September 2015.
The UK, which first introduced contactless payments in 2007 with a spending limit of £10, has seen a huge surge in popularity with the total worth of transactions tripling from £653 million in 2013 to £2.32 billion in 2014.
Currently, Contactless Payments allow customers to pay up to £20 by swiping their card on a reader at a till or on public transport without entering a PIN.
The average spend in a single contactless transaction is £8.26. The transactions happened at a rate of 10 a second, and peaked at 319 million, a rise from 100 million in 2013. The plans to increase the limit to £30, means shoppers will be able to spend more on smaller-priced goods and at a faster rate due to not having to insert a debit or credit card and enter their PIN.
The soaring number of contactless transactions that stood at 319 million in 2014 is credited to the London transportation network, which has been supporting the new payment methodology since September last year.
“We have seen over 41 million journeys made across London using contactless within just five months,” said Sashi Verma, Transport of London’s (TFL) Director of Customer Experience. “Contactless payments to travel can save our customers time, they don’t need to stop to top-up an Oyster card, or buy a ticket and can benefit from daily and Monday to Sunday capping.”
It appears that the UK is fast becoming a cashless society and is becoming even more important that business owners are able to meet customer demands for flexibility in their payment options.