Contactless transactions are on the peak in the UK. Nine out of ten card transactions which were made in 2020 were all contactless. This had accounted for 57 per cent of all debit card and 35 per cent of all credit card transactions.
The FCA has made an announcement in response to demand, and the sums of money moving around, that the single transaction limit will be increased from £45 to £100. And also, the threshold for multiple contactless payments is to be increased from £130 to £300. This launch seems to bring a spark of concern on security, such as in case of a stolen card. However, banks have increasingly effective ways to detect fraudulent and to block a card.
The boom in contactless payment started after the pandemic set in. Shifts in customer’s choices had led to an increased demand for more convenient methods of payment. In 2017 itself, card payment overtook cash in the UK. Card has now become the default for Brits down the shops. Barriers to payment need to be alleviated or removed entirely. Or else it leads to miss opportunities and businesses will feel a pinch in revenue. In the UK, as the unlocking is increasing day by day, the demand for shopping will also be increased.
Vendors have many options such as mobile point of sale (mPos). This is a system that has come on leaps and bounds in the past few years. A mPos device can go anywhere, and take payments for a vendor. This makes it ideal for anyone that works on the move, whether that be a food truck, or a mobile mechanic etc. These are available, in SumUp’s case, with unlimited data plans to maximize the portability of the device and medium. Payment technology is ever-evolving and mPos is at the forefront of the cash to card progression. All of this was in development during the pre-pandemic and a year of pandemic has nudged us towards the card payment. SMEs will continue to benefit from the rapid developments in payment technology. Customers now expect to have the option to pay by card and it’s important that vendors keep up with this demand. Reliable contactless systems will keep customers happy, and help keep a business improving.
