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Trade News Archive 2010 January February March
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12th March 2010
Contactless payment limit raised for retailers
Small and independent retailers across the country could benefit from the decision made by banks to raise the limit of contactless card payments to £15.
Up to now, shoppers have only been able to make transactions of up to £10 without entering their Pin or offering a signature to verify their payment.
But with one in seven UK residents expected to have a contactless card by the end of the year, the increased limit could provide a timely boost to those retailers who are adopting the contactless payment system.
To date, the technology has been primarily adopted by coffee shops and convenience stores, but the latest move - which was requested by Visa and Mastercard - has been seen as a way of attracting more shopkeepers, according to the UK Cards Association.
A spokeswoman for the association explained that there is little danger of fraud from the system - which allows consumers to pay for transactions simply by holding their debit card next to a reader - because of the small sums involved.
Brian Cunnington, a Barclays representative, said: "Contactless technology is undoubtedly the future of payments and we are seeing it grow hugely in popularity.
"More than two years after the first customers were issued with contactless cards, it is the right time for the industry limit to increase to £15, in line with demand from consumers and retailers alike."
With the payments industry recently highlighting plans to phase out cheques by 2018, the popularity of the service could rise further with consumers looking to pay for goods quickly without having to carry cash.
© 2010
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