Connect with us

Hi, what are you looking for?

Investing

Contactless payment rules to see huge change in the Budget today with new £100 limit

contactless payments

The rules around contactless payments are to be changed in The Budget today with the limit raised to £100, Chancellor Rishi Sunak has said.

Speaking to the Evening Standard, Mr Sunak said: “London’s retail sector is famous across the world, with Oxford Street, Covent Garden and Westfield seen as global destinations for shopping.

“As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping, providing a welcome boost to retail that will protect jobs and drive growth across the capital.”

Since the limit for contactless card payments was raised from £30 to £45 last April at the start of the coronavirus pandemic, people have increasingly made use of contactless payments, the Financial Conduct Authority (FCA) said.

The FCA said: “It’s important that payments regulation keeps pace with consumer and merchant expectations.”

Increasing the contactless payment limit may hasten the demise of cash use, although the Government intends to legislate to protect access to cash.

Some retailers have encouraged shoppers to pay by card rather than cash during the pandemic, although a recent Bank of England study found the risk of catching coronavirus from banknotes was low.

The current £45 limit is three times the amount it was a decade ago.

“Tap and go” contactless cards initially had a limit of £10 in 2007, and this was increased to £15 in 2010, £20 in 2012 and £30 in 2015.

Gareth Shaw, head of money at Which?, said: “Raising the contactless payment limit will be helpful for those who are comfortable managing their money digitally and is further demonstration of the banking industry’s acceleration towards cashless payments.

“However, the focus cannot solely be on making things more convenient for those that can benefit from developments in payment technology. Millions of people still rely on cash to pay for essential products and the cash network needs to be protected for them, as the rapid pace of cash machines and bank branch closures shows no sign of slowing down.

“Legislation needs to be introduced by the Government as soon as possible to safeguard access, while the regulator must track cash acceptance, as legislation will be undermined if there is nowhere to spend it.”

A spokesman for trade association UK Finance said: “Contactless payments are increasingly popular, with many customers taking advantage of the higher £45 spending limit introduced by the banking and finance industry last year.

“The industry believes that a more flexible approach could be merited in future, which takes into account consumer demand, fraud prevention, security and convenience. UK Finance looks forward to seeing more details from the FCA on its proposals and will respond to its wider consultation on this issue in due course.

“Contactless is one of a range of payment methods and the industry will also continue to work closely with the regulator to ensure that customers can pay in a way that suits them.”

Read more:
Contactless payment rules to see huge change in the Budget today with new £100 limit

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

A cabinet split is hampering the government’s efforts to deal with the nationwide shortage of lorry drivers that threatens fuel supplies at some petrol...

Investing

Pubgoers are flocking back to their locals, according to figures that drew a cautious toast from the industry but also prompted warnings of fresh...

Investing

Ministers are backing a multibillion-pound plan to build another large-scale nuclear power plant in Britain to ease pressure on electricity supplies as the country...

Economy

The Philippines’ balance of payment position (BoP) hit $1.044 billion in August, the highest in four months, due to increased special drawing rights (SDR)...

Economy

Consumers were less pessimistic in the third quarter as more jobs opened up, but business sentiment turned sour amid a fresh surge in coronavirus...

Economy

The Philippine central bank fully awarded the short-term securities it sold at an auction on Friday, even as rates rose on growing inflation fears....

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!