Brits embrace higher contactless spending limit

Brits embrace higher contactless spending limit

The UK's decision to up the contactless spending limit from £20 to £30 six months ago has proved popular, particularly with pub-goers, new figures from Visa show.

Contactless transactions over £20 saw an average monthly growth rate of 19.1% between October 2015 and March 2016, double the growth rate of tap and pay under £20. In total, contactless usage between £20 and £30 now account for more than 10% of all face-to-face card transactions within that spending band.

Bars and pubs have seen a surge in contactless transactions in the £20 to £30 band. Average weekly growth was 30% between October 2015 and March 2016. This compares to growth of only three per cent for contactless purchases under £20, suggesting larger rounds or more expensive bottles of wine are now being bought via tap and go.

In supermarkets, where the average basket is £25, the data shows a 100% increase in contactless transactions compared to the six months before the £30 limit was introduced. Restaurants have enjoyed a similar boost as a meal for two has come more into range when paying this way - spend there has risen 155%.

Similarly, consumers have turned to contactless when filling up their cars 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.

Kevin Jenkins, MD, UK and Ireland, Visa Europe, says: "Overall, we have seen 36 million contactless transactions over £20 in the first six months; which amounts to nearly £900m of transactions made easily and safely, in less time, freeing consumers from the need to carry cash."

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