Contactless payment to rise in popularity, analyst says

The limit on contactless payment in the UK has been increased from £20 to £30 a few days back and according to a market analyst, we can now expect the number of people using this method to rise even more.

“Contactless payment has become the new norm, so it was really only a matter of time until the limit was increased, said Fiona Cincotta, a senior market analyst at Finspreads for IT Pro Portal.

“As the public have come to trust this method of paying, the number of people using contactless has surged and now with the limit increased we can expect to see this number jump even higher.

Problems which have occurred have not slowed the growth down, Cincotta continues, adding that the convenience of this method is what makes people use it.

“Even though there are still some security issues surrounding contactless payment, this has had little negative effect on user numbers and the absolute convenience of this method suits today’s busy lifestyle. Going forward, as we see the next generation of digital devices we can only expect contactless to become more popular and the limit to possibly even disappear.”

The beginning of September marked the increase of the limit on contactless payments across the UK. However, not all retailers will offer the new limit from day one because a number of software updates will need to be made to payment terminals first.

British are the leaders in the adoption of this new payment method, with British shoppers spending €330m (£234m) in March across 52.6m transactions using contactless payments.