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Contactless Could Rise To £100 Now Brexit Has Happened

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Contactless Could Rise To £100 Now Brexit Has Happened

The contactless payment limit may rise from £45 to £100 after the UK has left the EU.

Finance industry leaders are saying that it would make things including eating out and shopping in supermarkets less of a Covid-19 risk.

The current cap was set by the European Commission, but now Brexit has happened, it could be changed.

UK Finance, a trade association for the UK banking sector, says that the idea has been pitched the Treasury, according to The Times.

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Credit: PA
Credit: PA

The lobby group is hoping to push the move with card providers, with the Financial Conduct Authority (FCA) needing to agree in order for it to take effect.

Contactless cards were first brought in in 2007, when they had a spending limit of £10.

In April, the limit was raised from £30 to £45 in order to help curb the spread of coronavirus. It meant less contact with PIN pads and as it's quicker, it means less time is spent interacting with shop staff.

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Since then, bankers have surprisingly not seen any higher levels of fraud.

UK Finance say that the proportion of contactless payments peaked in September, with it now making up 64 percent of all debit card payments.

Credit: PA
Credit: PA

The value of contactless transactions in September was £8.2 billion in total, up from £7 billion in September 2019.

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The Times said that it believed the response to upping the limit had been positive, suggesting it could be a way to prove that Brexit has meant a move away from EU rules.

It would also be less contentious than other things like food or wages.

Eric Leenders, Managing Director of Personal Finance, UK Finance, said: "September saw the proportion of contactless debit card payments hit a record high for the second month in a row, rising to 64 per cent of total transactions in August.

"The value of overall contactless spending was also up by over 18 per cent compared to the same period last year, as consumers made further use of the increased £45 contactless spending limit.

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"Debit card spending remained a preference as consumers continued to opt for more immediate settlement of payments as a means of managing their finances amid this year's economic uncertainty.

"The total spend of £58.5 million was much the same as in August, but 12.8 per cent higher than in September last year.

"Given the popularity of debit card spending, the annual growth of outstanding credit card balances continued to contract, dropping 14 per cent over the year to September as repayments continued to outstrip new borrowing."


Featured Image Credit: PA

Topics: UK News, brexit

Amelia Ward
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