Retailers to benefit from contactless limit increase

Retailers across the UK are set to benefit from the increase in contactless payment limit from 20 pounds to 30 pounds on September 1, but fashion retailers in particular will profit the most, according to Visa Europe.

With approximately 58 million contactless cards in use in the UK, retail sales between 20 and 30 pounds currently account for all apparel sales - equal to 4 million pounds a day. With the limit increase in action, this mean there is "huge potential" for fashion retailers to satisfy customers experience, especially when it comes to store waiting time, said Visa Europe’s director of retail engagement Natasha Toothill.

"For fashion stores it is all about cutting queues and increasing customer satisfaction at the checkout. Contactless is seven seconds faster than all other forms of payment so retailers need to invest in adapting their systems to reap the benefit if they haven’t already done so," said Toothill to Drapers. The increase in limit will be especially attractive to millennial consumers, believes Toothill.

"The average basket value for the millennial customer in the UK is around the 30 pound mark so contactless payment will soar among these shoppers. It is also seen as a stepping stone for mobile payment, so retailers need to keep up with this type of changing customer behaviour." With 75 percent of Visa card transactions set aroun d the 30 pounds mark or less, retailers should be quick to update all software to accept the limit increase.