UK consumer has taken to contactless cards. Contactless payment UK monthly plastic money spending passes the
£1.0 billion barrier.
It is good to see that British consumers are doing their best to help the economy by using their contactless plastic money.
Contactless payment is a faster method of paying low-value items, since no PIN number has to be entered, even though UK consumers have expressed fears about contactless card security.
NOTE that every banks has a limit processing for Contactless Payments. Every contactless card has an in-built security limit check which requires the PIN to be entered after a number of consecutive contactless payments to verify that it is the genuine cardholder.
The limit is called no CVM limit for Contactless (NO_CVM_CTCLS_AMT). This is a limit to mitigate the risk that when the card is stolen or lost, someone else can do low-value transactions without the need to enter a PIN forever.
Also there is a daily limit for Contactless (POS_CNTCTLESS_AMT) - a limit to mitigate the risk that when the card is stolen or lost, someone else (who knows the PIN) can do transactions with the card up to the available balance on the account.
This limit is also used to switch contactless on or off (by means of a limit override).
It is possible that the maximum amount for a UK contactless transaction increased to £30 in September 2015 to now 2020 could be the cause.
According to figures compiled by the UK Cards Association, British shoppers used contactless cards plastic money to pay for £1.174 billion worth of goods and services.
That spending on contactless cards has increased almost fourfold and over £1.0 billion to be spent via plastic money contactless card in a month is a major milestone.
The rises of plastic money can be contributed to the impact of Black Friday and Cyber Monday. The total number of online spending increased to 23% when compared with the previous year 2014.
In addition, the contactless debit and credit cards spending increase hugely at a record retail sales. Whether you're buying lunch or paying for travel, there is a hunger for contactless payment and this is only going to grow.