£30 contactless threshold increase could impact 3 million transactions per day
The contactless transaction threshold increases to £30 today. Visa Europe welcomes this new threshold increase and believes it will be the most significant to date.
Visa Europe’s data analysis shows:
- The increase to £30 could affect approximately 3 million Visa transactions a day, for a total of over £70 million
- Supermarkets, clothes retailers, department stores and pharmacy chains will benefit the most from the increase as 12-20% of all of their transactions fall into the £20-£30 band
- Supermarkets will be the biggest beneficiaries in terms of volume, with an additional 1.1 million transactions a day now falling under the contactless threshold
- 75% of Visa’s transactions are £30 and under, making contactless much more useful for the vast majority of everyday payments
- Contactless transactions are on average 7 seconds quicker than traditional chip & PIN, meaning shorter queue times
Visa Europe believes that the threshold increase will redefine how contactless is used, now that higher value goods and services can be purchased using contactless. Consumers will be able to experience all the benefits of contactless – speed, convenience and security – across a broader range of shopping scenarios, which will see ‘touch to pay’ become more popular than ever before.
Visa Europe is now also seeing ‘touch to pay’ behaviour translating to other NFC enabled technologies; the recent launches of Apple Pay for iPhone 6 and Apple Watch and the new bPay wearable products have given consumers new ways to make contactless payments with Visa. And, these digital payment methods will be supported by the contactless infrastructure that is already in place, and continues to grow. Visa Europe has a mandate that by the end of 2019, all Visa point of sale terminals in the UK will accept contactless payments.
Commenting on the increase, Kevin Jenkins, Managing Director of Visa UK and Ireland, said:
“We believe that the new threshold increase to £30 could be the most significant to date, and has the potential to essentially redefine contactless usage. With contactless now accounting for one in 11 in-store Visa transactions, and Britons increasingly embracing the technology, our data shows that the rise could impact as many as 3 million Visa transactions per day in the UK, for a total of over £70 million.
“Supermarkets, clothing stores, department stores and pharmacy chains particularly stand to benefit from the increase, as 12 – 20% of Visa transactions at these retailer types fall into the £20 – 30 category. This is an opportunity to increase convenience, improve service and deliver an enhanced shopping experience for a significant number of their customers.”
Kevin has written an article discussing in details the impact of the increase on consumers and retailers which can be found below and here: http://vision.visaeurope.com/from-sandwich-shops-to-supermarkets-touch-and-pay-up-to-30/