The spending limit for contactless card payments will be increased from £30 to £45, with a national roll-out beginning from 1st April 2020, UK Finance has announced.
The decision to raise the limit was taken following consultation between the retail sector and the finance and payments industry and follows similar increases in several other European countries over the past week.
The changes were already under consideration by the industry, but the process has been expedited as part of the industry’s response to the Covid-19 outbreak to support consumers who choose to pay using contactless at this time.
From 1st April 2020, consumers will begin to see an increasing number of retailers accepting contactless card payments up to the new £45 limit. Given the pace at which this change is being rolled out, the new limits will take some time to be introduced across all retailers, including some of those facing additional pressure due to the Covid-19 outbreak.
For consumers spending more than £45 there are many ways to choose to pay, for example through Chip & PIN, cash and alternatives such as mobile payments which do not have an upper limit when authenticated through biometric technologies.
Stephen Jones, CEO of UK Finance, said “The payments industry has been working closely with retailers to be able to increase the contactless payment limit to help customers with their shopping at this critical time for the country.”
“This will give more people the choice to opt for the speed and convenience of purchasing goods using their contactless card, helping to cut queues at the checkout.”
“The industry continues to work closely with the government and regulators to support customers impacted by Covid-19 and ensure that they can pay in a way that suits them.”
BRC Head of Payments Policy, Andrew Cregan, said“The last contactless limit increase to £30 took two years to implement but, given the extraordinary circumstances we face today, this new £45 limit will be rolled-out from next week. Some shops will take longer to make the necessary changes, given the strain they’re under. In the meantime, most customers can continue to make contactless payments for higher amounts using their smart phone.”
Gareth Shaw, Head of Money at Which?, said “It’s understandable that some shops may ask customers for card-only payments to reduce the risk of transmitting the coronavirus, but we are concerned this will leave many vulnerable people unable to pay for the basics they need.”
“Both the government and retailers need to find a way to ensure that the millions of people who rely on cash, and may not have a bank card, can still pay for essentials during this difficult time.”