04 April 2016

ITProPortal: Increasing contactless payment limit to £30 hit the sweet spot

Contactless payments have seen an increase in use of 237 per cent year-on-year, new data from Visa Europe has shown. The company published the data to mark the release of its new campaign, “Cashfree and Proud”, which aims to encourage consumers to adopt contactless payments.

Visa Europe says the increase was fuelled mostly by the increase in the limit on contactless payments. Last September, the limit was increased from £20 to £30.

Looking at purchases of more than £20, they had grown by 19.1 per cent in the period between October 2015 and March 2016. At the same time, the monthly growth of purchases of under £20 has been 8 per cent.

“In total, contactless usage between £20 and £30 now account for more than 10 per cent of all face-to-face card transactions within that spending band,” the company said in a press release.

 “The trajectory for contactless payments continues to look very strong. Increasing the spending limit to £30 has clearly encouraged consumer adoption and retailer opportunity across Britain; families are now able to do their weekly supermarket shop and pay contactless; the increase has driven a demonstrable shift in consumer behaviour,” said Kevin Jenkins, managing director UK & Ireland at Visa Europe.

“Overall, we have seen 36 million contactless transactions over £20 in the first six months; which amounts to nearly £900m of transactions made easily and safely, in less time, freeing consumers from the need to carry cash. While the number of transactions continues to grow, we are already seeing the next generation payment technology arrive, with mobile and wearable payment services bedding in.  Where the convenience and safety of making a contactless payment is available, consumers are eager to be cash free and proud.”

Full article

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