From today the UK’s contactless spending limit will rise from £45 to £100 following a decision by the Treasury and the Financial Conduct Authority (FCA).
There will be a short delay with some retailers as payment terminals will need to be updated to accept the new £100 limit.
Ian Bradbury, CTO, Financial Services at Fujitsu UK&I said, ‘It was unsurprising to see Rishi Sunak announce that contactless would rise to £100 for major retailers as lockdown restrictions last year warranted for a socially distanced society. And while those changes are only coming into effect today, this emphasis on card and contactless payments will continue to be a staple of our daily lives.
“Cash remains a carrier for infectious diseases and the beginning of the pandemic meant businesses had to encourage digital card payments, while some now refuse to accept cash altogether. When we think about cities like London, consumers often enter stores that are mostly made up of self-checkouts with digital payments the only option.
“Although this new way of spending might be convenient for the majority as 13.7 million consumers didn’t use cash at all in 2020, the move to contactless shouldn’t come at the expense of others in the UK. Yes, a 100% cashless society can increase security, accessibility and convenience day-to-day but there are many who still rely on cash, physical stores and ATMs; nearly 2.2 million people in the UK still use cash for all of their daily transactions – like those with cash-in-hand jobs, without a digital device or in rural areas with limited signal.
“It’s only with a thorough understanding of society – and therefore the ability to educate those at risk of being left behind – will consumers of all ages become more comfortable in leaving cash behind and relying on digital payment services 24/7.”