Swedbank: residents are prepared for increased non-contact cards limits
Since summer last year, Swedbank commenced issuing non-contact payment cards in Latvia. The bank’s data shows that 150,000 clients use advantages of such cards every day. Currently 82% of new Swedbank cards ordered on the internet have non-contact functionality. Every month, residents perform around 300,000 non-contact transactions.
Swedbank representatives say that thanks to secure and quick everyday transactions, most residents are prepared to spend more money using non-contact transactions. EUR 10 is the current limit for non-contact cards in Latvia and the lowest one in Europe. 60% of Latvian residents would spend amounts larger than EUR 10 using non-contact cards. For example, 34% of interviewed residents would be prepared to make purchases up to EUR 20, 23% – up to EUR 30, 4% – up to EUR 40, and 17% – up to EUR 50.
«This is still only the beginning, because we have noticed that most retailers are not in a hurry to perform the necessary improvements to service non-contact transactions, which makes everyday transactions harder for themselves and their clients. This is why we invite every person in need of quick and efficient transaction processing solutions to turn to their bank to find out if they offer non-contact transactions,» says Swedbank board member Renars Rusis. Bank representatives also say that the average non-contact transaction amount has grown twice this year, when compared with the same period last year. This is why increasing the limit to EUR 20 would speed up the appearance of larger purchases. Getting lunch (55%), public transport costs (46%) and small purchase (43%) are the most common situations in which residents tend to spend up to EUR 10, Swedbank’s data shows.