For Finextra's free daily newsletter, breaking news and flashes and weekly job board.
With the limit for contactless sitting at £30, the amout spent will take considerable time to reach the heights of chip and pin transactions. Furthermore, not all banks or issuers have issued contactless cards..hello M&S and John Lewis cards..
What you have to ask is how much of contactless is simply canablisation. Its not that we are spoending more - we are just not using cash at certain locations now - either by choice, or as is the case on TfL because we have no choice.
Yes, Contactless cards will increase in % terms but until the limit is to £50 you won't see a signficant change for a while.
PS - dont forget that the card schemes have issued a mandate to all retailers stating that all terminals must be contactless within the next two years - so once choice is not an option - it's enforcement.
I completely agree that it will take a considerable amount of time for contactless transactions to reach anywhere near chip and PIN, my point is that the limit on contactless transactions has meant that consumers are now more likely to use cards (whether
contactless or chip and PIN) for lower value payments traditionally made using cash, as they understand it is acceptable to do so.
Without doubt, until all cards issued and acceptance terminals are contactless-enabled, the % of contactless transactions will remain small.
Head of Marketing & PR
09 Oct 2015
22 Jan 2019