The increase in the UK contactless transaction limit from £30 (US$37.50) to £45 (US$56.25) has resulted in 43% of in-store transactions valued at between £30 and £45 now being made via contactless payments, Barclaycard reports.
“This is expected to increase as public awareness of the new limit grows, and as more businesses implement the technology change on their card machines,” it adds.
“Less than a month since the introduction of the new £45/€50 contactless limit in the UK and Ireland, Barclaycard, which handles half of all contactless transactions in the UK, has processed over 7m contactless payments above the previous limit of £30/€30, and up to the new £45/€50 limit.”
This has led to a jump in the overall average value of contactless transactions, from £9.28 (US$11.61) to just under £14 (US$17.51), Barclaycard says.
The average value of all new contactless transactions above the previous £30 limit is just under £36 (US$45.03).
“The total amount spent on contactless transactions over £30 already exceeds £264m (US$330m).
“The higher limit helps prevent the spread of the virus by allowing more shoppers to pay without touching card terminals or handling cash.
“It also helps reduce the volume of people in stores by reducing queue times — contactless transactions are, on average, seven seconds faster than chip and PIN, and 15 seconds faster than cash,” Barclaycard also points out.
“Deployment of the new limit is being prioritised for retailers in key sectors, including grocery and supermarket stores, bakeries, pharmacies and petrol service stations. Barclaycard will be supporting the deployment of the higher contactless limit to other sectors in due course.”
“We believe that contactless is the safest, fastest and most responsible way to pay in store, and we encourage all consumers to take advantage of the new higher limit where possible,” CEO of Barclaycard Payments Rob Cameron says.
• Find full and up-to-date details of worldwide contactless limit increases in NFCW’s table of contactless transaction limit changes.