Retailers and shoppers across the Isle of Wight are sure to be welcoming today’s news that the contactless transaction limit is being increased from £45 to £100 – and it’s all possible thanks to Brexit.
Prior to the coronavirus pandemic, you could only spend £30 via contactless technology, such as a debit card or Apple Pay. That limit was raised to £45 early last year and it is now being raised once again.
Rishi Sunak, Chancellor of the Exchequer, has today (Wednesday) announced during his Budget that shoppers will be able to tap away to the tune of £100 per transaction. The change in rules has legally come into force today but is not expected to be implemented just yet. The £100 spend is now possible because the United Kingdom is no longer bound by the EU’s £45 limit.
It’s hoped that the new limit will reduce the need for people to use chip and pin, thus reducing the physical contact required in retail outlets. This not only helps reduce the risk of transmission of COVID-19 but should help restore confidence when non-essential retail re-opens on 12th April.
History of Contactless Payment
• 2007 – Contactless first introduced with a limit of £10
• 2010 – Limit increased to £15
• 2011 – First ‘quick tap’ mobile payment device launched
• 2012 – Limit increased to £20
• 2014 – Apple Pay introduced
• 2015 – Limit increased to £30
• 2020 – Limit increased to £45
• 2021 – Limit increased to £100
On 12th April, all retail will re-open alongside hospitality (outdoors), hairdressers and zoos. Staycations will also be allowed, meaning people are likely to be out and about spending more money than the first 4 months of 2021.
Then on 17th May, all indoor hospitality will open up alongside gyms, bingo halls and cinemas. It will be on 21st June that even more money is being spent when nightclubs re-open – and the new limit should speed up the purchasing of drinks!
Great… if you don’t get your card nicked!
Muggers paradise now that few carry cash.
Wait until the massive building to be carried out here are filled with such ‘delights’
Ridiculous in this day an age that it is too much ‘effort’ to enter even a four digit code or have finger print readers to prevent such occurring now.
Still perhaps it will prevent rioting to gain new footware.
£100? WOW! That will probably pay for 30 minutes entertainment in a Merstone Bawdy House once lockdown is over.
It been much higher in other countries outside the EU for a long time.
Nice that the UK can set our own limits and I suspect the banks will let customers set personal limits too.
Another nail in the coffin for cash. This government is determined to rid our society of cash and make it card only transactions. No absolute proof that you can catch Covid from handling cash. This was scaremongering at its best. Say goodbye to getting a deal from a tradesman for a cash only job. This was and is a thorn in the side for the taxman.
Muggers paradise maybe, but with cctv technology its getting difficult for them, also your money is insured with the bank ,also how many people will forget there pin numbers now
Only from the time you let your card provider know you have lost your card. And how can you do that as the phone number to ring is on the lost card?
Dreadful idea if you get your card nicked, or lose it!
What extra security are they going to put on it? It is all very well saying phone your card provider if you lose your card, but the phone number to ring is on the card so if you have lost it, how can you?
Companies such as Barclays allow you to freeze your card by using the app, maybe something like that could be used industry wide
Apps or put number on phone