Starting tomorrow, shoppers will be able to make payments of up to £ 100 with a single tap of their debit card.
It’s the second big hike in limits in less than two years as the government tries to get people to spend more in stores.
Sandra Rowley at the provider of card payment solutions takepayments.com said: “The £ 100 increase in contactless card payments reflects consumer demand for faster card payments.
“The coronavirus pandemic has accelerated the decline in cash use faster than expected, and industry payments have recognized this.
“Many merchants have invested time and money in setting up contactless payments, our annual one, in response to the pandemic Business Trends Report announced that one in ten business owners introduced card machines to their business in the past year in response to the pandemic.
“This could also lead to increased spending that would aid the current struggle that many small businesses are facing.”
David Postings, General Manager of the UK Finance retail organization, said: “Contactless payments have proven very popular with consumers and an increasing number of transactions are being made using contactless technology.
“Raising the limit to £ 100 will allow people to pay for higher value transactions like their weekly grocery shopping or fueling their car.
“The payments industry has worked hard to set up the infrastructure so retailers can update their payment systems to offer this new higher limit to their customers.”
Chancellor Rishi Sunak said: “The increase in the contactless limit will make it easier than ever to pay safely and securely, be it in local shops or in your favorite pub and restaurant.
“When people get back on the high street, millions of payments will be easier, which will give retailers and shoppers a welcome boost.”
When contactless cards were first introduced in 2007, payments were limited to £ 10.
That rose to £ 15 in 2010, £ 20 in 2012, £ 30 in 2015 and £ 45 in April last year in the early days of the pandemic.
However, the recent surge has worried some that it might be easier for scammers to spend people’s money.
In March, Gareth Shaw, Head of Money at consumer research and advice agency What? Said: “The risk of becoming a victim of contactless card fraud is currently low, but there is potential for theft if criminals take advantage of the increased spending limit.” to maximize the amount they can steal. “
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