The way we pay has changed significantly over the last decade. Suddenly physical payments are out, and digital contactless payments are in. And this is a trend that has only accelerated since the pandemic. Below, we explore the research that reveals that consumers prefer contactless payments.
Spending limit increase
Part of the increased adoption of contactless payments has coincided with the spending limit increase on cards. October 2021 saw the contactless payment limit increase up to £100 from £45, following a 12 percent increase in contactless usage during 2020. This is the second time that the spending limit has been increased and both changes have resulted from intensive public consultation. Clearly, there’s demand for contactless spending to be made easier and more accessible. With the limit increase, it seems as though contactless payments will only become more popular from now on.
Research shows that the public now prefers contactless technology compared to traditional forms of payment. UK Finances’ 2021 Payment Markets Report reveals that in the last four years contactless payments have jumped from making up seven percent of all payments to 24 percent. On top of this, over 80 percent of the UK residents now use contactless payments. With contactless payments consistently trending upwards, it appears as though this technology is the preferred future of payments.
Benefits of contactless
It’s unsurprising that contactless is so popular, given its many benefits. As an accessible and practical way to make payments, it has many advantages over traditional payments.
Contactless payments are usually more convenient than paying in cash. You can simply pay the exact amount with one tap, rather than having to pay with a note and get unwieldy change in return. At the same time, contactless means you don’t have to worry about typing in your PIN or concern yourself with people looking at your PIN.
Contactless payments can also carry useful safety features. If you complete contactless payments on your phone via a digital wallet, you can make it difficult for anyone to steal your card and commit fraud. Plus, even with the payment limit increasing, there’s still a clear ceiling on the amount of money that can be spent should you lose your card.
On top of all this, contactless payments are much easier. A quick tap means you avoid the process of exchanging physical cash and can be much more hygienic.
Contactless payments are set to replace physical payments soon. With greater convenience and safety it’s unsurprising. With the increase to the spending limit, now’s the perfect time for you to embrace the future and adopt contactless payments yourself. But be sure not to allow yourself to overspend on your monthly budget as this payment option encourages that, I can assure you. Peace.