Contactless Threshold Bump Could Impact 3m Transactions a Day
- Tuesday, September 1st, 2015
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As the UK increases the limit on contactless payments to £30 per transaction, Visa Europe has released figures suggesting that the change could result in over £70m more money being spent via contactless technology.
Approximately 3m transactions a day are expected to be impacted by the changes, with supermarkets, clothes retailers, department stores and pharmacy chains expected to benefit most from the increase. Between 12-20 per cent of all their transactions fall in the £20 – £30 band.
Supermarkets will be the biggest beneficiaries in terms of pure volume, with an additional 1.1m transactions a day falling within the contactless limits. 75 per cent of Visa transactions will now fall within the threshold, making contactless suitable for the vast majority of everyday payments now.
With the launch of mainstream mobile payment technologies like Apple Pay and Samsung Pay, as well as wearable devices like the bPay range from Barclaycard, it isnt just credit and debit cards that are making an impact on the growth of contactless.
“We believe that the new threshold increase to £30 could be the most significant to date, and has the potential to essentially redefine contactless usage,” said Kevin Jenkins, managing director of Visa UK and Ireland. “With contactless now accounting for one in 11 in-store Visa transactions, and Britons increasingly embracing the technology, our data shows that the rise could impact as many as 3m Visa transactions per day in the UK, for a total of over £70m.
“The contactless revolution is in full swing and Brits are increasingly adamant about paying with just a tap of their card or their phone,” said Dave Hobday, UK managing director of payments processing firm Worldpay. “Increasing the limit to £30 will only intensify the demand for convenience and speed everywhere we shop.”