Contactless payment limit increased to help combat coronavirus

From April 1, shoppers will be able to spend up to £45 on their contactless card transactions, compared with £30 at present, the British Retail Consortium (BRC) revealed. The change comes after lobbying by the trade body and following consumer demand for a higher limit.

The coronavirus outbreak has prompted concerns about the use of cash and PIN-entry devices, in case the infection is spread by contact.

The BRC said that, while the new limit will be applicable from the start of next month, “it may take some time before it can be applied everywhere” and “may take longer to roll out at retailers who are currently operating at peak capacity”.

BRC head of payments policy Andrew Cregan said: “The last contactless limit increase to £30 took two years to implement, but given the extraordinary circumstances we face today, this new £45 limit will be rolled out from next week.

”Some shops will take longer to make the necessary changes, given the strain they’re under. In the meantime, most customers can continue to make contactless payments for higher amounts using their smartphone.”

The use of cards and contactless payment has been growing for some time, and retailers including Sainsbury’s and Tesco have piloted cashless stores.

Banking body UK Finance has forecast that cash will comprise just 9% of payments by 2028, compared with 60% in 2008. However, there has also been concern that a move away from cash risks excluding deprived groups.