CONTACTLESS CARD LIMIT TO BE DOUBLED TO £100
RISHI SUNAK will more than double the limit shoppers can splash out using contactless cards and phones to £100 today — giving a big boost to retailers as the economy unlocks again.
It puts big ticket purchases and an average supermarket trolleyload in range of instant payments that do not require a signature or even a pin number.
It is the second rise in the limit, which went up from £30 to £45 last spring. Contactless has boomed during the pandemic as shoppers and retailers shunned cash, which might carry the virus.
Mr Sunak said easier payments will boost London’s retail sector, worth around £31billion. “London’s retail sector is famous, with Oxford Street, Covent Garden and Westfield seen as global destinations for shopping,” he told the Standard.
“As people return to the high street, the contactless limit increase will make it easier than ever for people to pay for shopping, providing a welcome boost to retail that will protect jobs and drive growth.”
The rise is only possible due to Britain’s exit from the EU, which sets the cap for member states. The announcement forms part of the Government’s new Plan for Jobs. Retail is one of London’s biggest sectors, with 40,125 firms employing more than 400,000 people.
Although the new limit will become law immediately, shoppers will not notice any changes yet because firms need time to update their systems. The banking industry is due to implement the limit later this year.
Many other major economies including Australia, Canada and the US already have limits close to £100.
Andrew Cregan, payments policy advisor at the British Retail Consortium, welcomed the “enhanced payment flexibility” but said customers walking away before contactless payments were completed, often accidentally, was “costing retailers millions in lost revenue”.
Nick Fryer, of Dojo, part of the brand Paymentsense, said the decision showed “clear logic” that bigger payments would lead to more spending and it would help get “business back up and running”.