The contactless limit has been increased in the UK from £20 to £30. CI has gathered some comments from the industry forecasting the trajectory of contactless spend. In 2014, contactless received its biggest boost yet when major retailers came aboard and Transport for London rolled it out, so where now for Tap and Go?
Contactless has finally has clearance for take off after its super progress since 2014. Now the UK has upped the payment limit to £30, all we need is to burst the M25 banks and away we go.
Ray Brash, MD & Chairman at PrePay Solutions (PPS), EuropeAt the moment, about 15% of our transactions are contactless. With the limit increasing to £30, we predict this will go up to 25% over the next year.
The average value of card transactions has been falling for a while now, as people continue to opt for greater convenience and become familiar with the technology.
We therefore see no reason why this can’t go up to 50% in the foreseeable future.
Contactless has become the norm for many transactions; as a retailer it has become vital to adopt the technology.
You don’t want to respond to the statement or question ‘go contactless’ with an embarrassed, sorry, we don’t do contactless.
Contactless comes in many shapes and sizes: from mobile phones to rings, jackets and bracelets.
Apple Pay and Samsung Pay are only a few examples of disruptive technology that is leading the way. For now…
As the largest issuer of prepaid contactless in Europe, we’ve been there from the start when we launched Orange Cash and EE Cash on Tap, and we look forward to seeing where it will grow next.
It is an exciting time for contactless – watch this space.
Lu Zurawski, Head of Consumer Payments EMEA, ACI Worldwide The speed of adoption of contactless payments in the UK, and London in particular, has been remarkable.
UK consumers do not appear to have been scared off by the new technology, nor by the new terminology but instead have readily accepted a new ‘payment ceremony’, waving their hand near a card reader.
The ‘tap-and-go’ mentality now pervades everyday life, with the use of contactless payments rising five-fold in the last 12 months in the UK.
This highlights the fact that ease and speed are both top, if not the number one priority for consumers.
The implications for retailers and banks are manifold: merchants will need to upgrade to facilitate the new payment limits; banks could find themselves in a situation where customers are calling when the £30 spending limit is not working, therefore training front end staff to field requests should be a priority.
Perhaps this mass adoption of the tap-and-go technique will also lead the way to greater mobile payments usage in coming years, particularly if the actions required for contactless mobile payments are a natural extension of what has now become familiar with contactless cards.
Apple Pay has opened up a whole new avenue for the payments industry, with mobile payments allowing consumers more freedom than ever.
The next logical step would be to allow consumers to set their own payment limits, and give them the ability to turn it on and off as and when they want.