Friday 15th October 2021 onwards marked the UK’s limit on a single contactless card transaction to increase from £45 to more than double at £100. As this threshold gradually gets implemented across the country, consumers can expect to enjoy more flexibility with contactless payments.
Announced by the Financial Conduct Authority (FCA) and HM Treasury, convenience was the primary aim. The increased payment limit was brought for the fifth time to date in response to the continued growth in card transaction usages over the years. A study found that 54% of consumers have been using contactless payment much more frequently in comparison to last year according to Mastercard (2021).
The Shift in Consumer Behaviour and Growth of Contactless
First introduced in 2007 as an alternative payment solution, the spending limit without requiring consumers to enter a pin was at £10 (BBC News, 2021). This alternative to carrying small cash was proven to be popular as the contactless limit was consequently raised to £15, £20, £30, and £45 respectively.
The Covid-19 pandemic only accelerated the shift away from cash to help tackle the spread of coronavirus.
Chancellor of the Exchequer, Rishi Sunak, briefed that this latest move would “make it easier than ever to pay safely and securely”.
Where the New Payment Limit will Benefit the Unattended Market
The ability to pay for higher value transactions is important for both consumers and merchants across unattended retail and the self-service sectors. Paying for the weekly grocery shopping or self-service kiosk services such as ticketing, or fuel payments will be quicker and have shorter queuing times due to the ease of use.
Furthermore, from the businesses’ perspective, you can benefit from better operational efficiencies. A convenient payment solution allows for better route planning and time management as merchants don’t need to go and operate the card machines or handle cash as frequently.
End-to-End Contactless Payment and Data Insight Solutions
Contactless payment has become essential as attitudes towards cash change. With our low transaction fees averaging 1.4%, and cash in the bank from 24 hours, this solution is invaluable to businesses looking to improve efficiencies and cashflow.
With Vianet’s end-to-end contactless payment and data insight solution, you can revolutionise your business estate to gather greater transparency of your business as well as combining contactless payment to create convenience and increase sales. Offering our streamlined payment technology together with our telemetry solutions, businesses are able to gather and generate “real-time” insight of their performance in our SmartVend portal.
Vianet’s contactless payment solutions are PCI Level 1 Compliant meaning they are secure payment devices, offering businesses and customers a peace of mind.
The gradual transition from traditional cash payment combined with the demand for contactless and the rise in the payment limit indicates businesses, particularly in the self-service sectors, need to adopt contactless payment to futureproof their estates.
Vianet provides the ultimate solution to drive efficiency, improve cashflow and profits, and give you greater transparency of your business. To find out more about our contactless payment solutions, get in touch with a member of the Vianet team at firstname.lastname@example.org or visit www.vianetplc.com.