The UK is raising the limit for contactless card payments to £ 100, marking the second time the cap has increased in a year. According to Evening standardChancellor Rishi Sunak will point to the increase in “ping” payments during the pandemic as the rationale for changing his budget today.
It seems that by raising the limit to more than double the previous one amount, the government hopes consumers will spend even more on retail and entertainment as businesses reopen in the coming weeks as the UK lockdown is phased out.
Overall, this is the third time that the contactless payment limit has been increased, following an increase of £ 20 to £ 30 in 2015, then to £ 45 last March amid hygiene fears at the start of the COVID-19 pandemic. Of course, the rise leads to security concerns, as a lost or stolen card could then be used by thieves to buy more things. It will be interesting to see if this prompts people to turn to mobile wallets such as Apple Pay or Google pay, which require an additional layer of biometric identification to enable payments, and forgo plastic altogether.