Do you accept contactless?
This week, payment technology giant Worldpay announced that contactless payments are now more popular than traditional chip and pin payments in UK stores. In June and July, contactless transactions accounted for 51% and 52% (respectively) of total payment transactions for those two months.
Since the first card being issued in 2007, there are now over 105m contactless debit and credit cards in the UK. In the last few years, British banks have seen the popularity of contactless cards increase due to rapid expansion as to where the cards can be used. With a £30 transaction limit attached to the cards, contactless payments have been increasingly popular on public transport, convenience shops and fast food chains.
Despite a £30 card limit, customers who prefer to use their smartphone wallet such as ApplePay® or Google Pay® may find they have a higher transaction limit or none at all – this all depends on the retailer and their bank. This technology could pave the way for contactless payments to dominate the payment industry within the next 5 years. Could this also be the end of the road for physical cash?
It has been reported that Bank of England economists have once again been discussing removing 1p and 2p coins from circulation after The Treasury discovered that approximately 60% of 1p and 2p coins were often only used in one transaction before being put in a money jar or thrown away. Furthermore, a fall in recent years of item prices ending in 99p and the increasing popularity of contactless payments have fuelled the debate further. After an analysis of UK price data, it was confirmed that the removal of coppers would not cause any detrimental effect on inflation.
As contactless payments are continuing to grow in popularity and proving not just a trendy gimmick, businesses who have not yet adopted the technology should seriously consider as part of future planning and business development. For more information regarding contactless terminals and processes, please contact your payment provider.