New £30 limit proves instant contactless hit
So far, so good.
The card payment limit increase to £30 from £20 last September was always expected to provide a further boost to contactless transaction stats.
Figures released by Visa on 4 April show that contactless transactions over £20 are growing at more than double the rate of those under £20 with bars and pubs a prime mover driving contactless growth.
Visa report 36 million contactless transactions over £20 in the first six months since the limit increase amounting to nearly £900m of transactions.
Contactless transactions over £20 saw an average monthly growth rate of 19.1% between October 2015 and March 2016. This is over twice the average monthly growth rate of 8% for contactless transactions under £20 over the same period, highlighting consumer appetite to use the technology for more expensive purchases.
Contactless payments now make up 10% of all face-to-face payments between £20 – £30 with service stations, supermarkets and restaurants all reporting significant contactless growth.
In supermarkets, where the average supermarket basket is £25, Visa’s figures show a 100% increase in contactless transactions compared to the six months before the £30 limit was introduced.
Restaurants have enjoyed a similar boost with spend there up by a whopping 155%.
At service stations, the average contactless transaction at the pump has increased by £2.22 since the £30 limit began, rising from £8.47 to £10.69.
Overall, UK contactless payments have risen by 237% compared to the same period year-on-year.