More than £2.5 billon was spent using contactless cards in the first half of 2015. And more transactions took place in 2014 than in the previous six years combined. We like to spend money and we like to spend it easily. The contactless card is quickly becoming a cash replacement. It is not simply as convenient as cash, it is more convenient. Contactless point of sales are everywhere. This means where in the past you might have scrabbled around in your purse or wallet to find some cash, given it to a shop keeper and waited for some change, now you simply wave your purse or wallet (containing your card) over the reader and the transaction is complete.
The system has become so successful that the upper limit for a contactless card transaction has risen to £30 from £20. This move, in part, is to enable a far greater use in supermarkets where the average ‘basket’ value is estimated at £25.
“Contactless payments are fast, easy and secure and use the same robust encryption technology as chip and pin. Consumers are increasingly choosing contactless as a way to pay and the new £30 limit will give shoppers and retailers even more opportunities.” Richard Koch, Head of Policy at the UK Cards Association explained.
The UK Card Association also believes that contactless card freud, a concern for some consumers, is very low, certainly lower than card freud generally. The reason is thought to be that the upper value is so low it is not attractive to those who might engage in such activity.
It is clear that any consumer based business, new or old, that does not have a contactless terminal available for small transactions, is going to lose out.
