Info-Tech

Price of contactless transactions doubles in two years

The amount of cash spent the use of contactless card technology has more than doubled within the UK since 2019, per the most smartly-liked figures from banking industry physique UK Finance.

Figures level to that close to £166bn was once spent within the UK final year the use of contactless technology, in contrast with £80.5bn in 2019.

The assortment of transactions elevated to 13.1 billion final year from 8.6 billion two years earlier. All over 2021, 69% of all debit card transactions and 56% of all credit rating card transactions had been contactless.

Consumers additionally took perfect thing about the flexibility to construct greater funds the use of contactless playing cards. In October, the restrict for single funds was once raised from £45 to £100 and since then, the frequent utilize per contactless transaction has risen.

UK Finance figures confirmed that in September the frequent rate was once £11.86, however in December it had grown by 30% to £15.30.

Lee Hopley, director of financial perception and learn at UK Finance, acknowledged the figures confirmed the continued popularity of contactless funds, to boot to the fact that folks are making greater-rate funds.

“From October final year, the contemporary £100 restrict was once rolled out and it gives clients greater different about how they pay for things fancy their weekly shop or a tank of gasoline,” he acknowledged.

There had been some raised eyebrows when the spending restrict was once first lifted to £100. This was once because contactless card funds use handiest single-part authentication, which is possession of the card, even supposing they originate quiz customers for a PIN after a great assortment of contactless funds.

The raised spending restrict on contactless card funds has boosted rate volumes and rate, however with out the introduction of more stringent authentication, the restrict is potentially now not to accumulate remarkable greater.

Fee programs equivalent to Apple Pay, which has no restrict on spending, require the presence of the phone connected to a checking yarn, to boot to a fingerprint or face ID.

In maintaining with the most most smartly-liked figures from UK Finance, contactless-handiest fraud equates to 2.5p in every £100 spent.

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