For those of you who regularly spend using your contactless card, we've got some great news – from today, the limit has risen to £30 per transaction! Previously it was only possible to use contactless for payments of £20 or less, so you can now spend more and enjoy the same contactless convenience. Chances are, this will prompt even more people to turn to cards instead of cash, with the number of card transactions already on the rise.
Latest figures from The UK Cards Association show that more than £2.5bn was spent using contactless cards in the first six months of 2015, compared with £2.32bn for the whole of 2014. In fact, the amount spent rose from £287m per month in January to £567m in June, which shows just how quickly the concept of contactless is taking hold.
The new £30 payment limit has been introduced "in recognition of the popularity of contactless spending and as the number of contactless cards in circulation continues to rise", said The UK Cards Association, and it's widely expected that the increase will see even more people go contactless in the coming months.
"Consumers appear to be increasingly favouring contactless payments at the tills, and with the limit now rising to £30 per transaction, it will be unsurprising if people start to use this option even more frequently when they shop," said Rachel Springall, finance expert at Moneyfacts. "Not only that, but many providers offer customers an easy-to-use online facility or mobile app to manage their accounts, which encourages consumers to go contactless and opt for their debit or credit cards when making a payment."
However, some people are put off using contactless payments due to the fear that it isn't as secure as more traditional methods of payment, but it could be time for this fear to fade into the background. The same security measures and encryption technologies are used with contactless as with chip & pin, and victims of fraud (which accounts for less than a penny for every £100 spent) will always get their money back.
Not only that, but consumers are still able to benefit from the same advantages of using credit cards, as Rachel points out: "Peace of mind is a definite benefit when using a credit card for shopping, either in store or online, as consumers are protected under Section 75 of the Consumer Credit Act for payments of £100 or more."
So, will the increased upper limit encourage you to go contactless more often? Chances are, you'll be using your card more than you did previously, but if credit's involved, it's important to stay sensible. "As spending becomes easier, consumers shouldn't forget to keep a close eye on where their money goes, especially if interest-charging credit cards are used," said Rachel. "If shoppers struggle to pay back their balance, they would be wise to hunt down a decent interest-free credit card for extra breathing space to tackle the debt."
As long as you stay sensible with your spending (i.e. don't be tempted to make that impulse purchase simply because it's easier to do so!) and don't get into excess debt as a result, the new £30 limit can be used to great effect, offering you added convenience with your everyday spending.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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