Retailers back increase in contactless payment limit as transactions jump

 
Helen Cahill
Follow Helen
Monzo cards allow customers to use contactless payments and monitor their spending on an app (Source: Monzo)

Retailers would back raising the contactless spending limit as the ultra-fast system for processing payments has pushed up transactions.

Research released by Barclaycard today has found three-quarters of retailers who have introduced contactless payments into shops have experienced an uplift in transactions of 30 per cent on average.

Read more: Is bPay a flop? Barclays' £20 contactless pay wristband is now free

Currently, the maximum a customer can spend in a contactless transaction is £30, but more than half of retailers want to see the limit increased. One in five retailers think the limit should be £100.

The limit was lifted to £30 in September 2015, and was previously £20.

Contactless technology first came to the UK in 2007 when Barclaycard released a card designed to help London commuters with Oyster payments.

Now, almost six in 10 Britons use contactless, and Barclaycard expects contactless card spending to soar 300 per cent by 2021.

Read more: Retailers blame cost squeeze for job cuts

The technology has been embraced by both traditional banks and start-ups such as Monzo, Tandem, Starling and Revolut.

Tami Hargreaves, director of innovation and partnerships at Barclaycard Mobile Payments, said: "As the old adage goes, 'time is money' and since introducing contactless to the UK 10 years ago, we've seen Britons embrace the technology in their droves.

"And with speed, security and convenience all being so important for shoppers, it's not surprising that contactless is quickly becoming the most popular way to pay."

Related articles