In recent years, contactless payments have become increasingly popular as a quick and secure way to make transactions. With the ongoing COVID-19 pandemic, the use of contactless payments has only accelerated as people seek to minimize physical contact with surfaces and other people. As a result, many countries have increased their contactless payment limits to allow for larger transactions without the need for a PIN or signature. But is this increase in contactless payment limits the new norm for quick and secure transactions?
First, let’s define what contactless payments are. Contactless payments are a type of payment that uses near-field communication (NFC) technology to transmit payment information between a card or mobile device and a payment terminal. This technology allows for quick and easy transactions without the need for physical contact or the insertion of a card into a terminal.
In many countries, contactless payments have been limited to small transactions, typically around $30 or less. However, with the rise of COVID-19, many countries have increased their contactless payment limits to allow for larger transactions without the need for a PIN or signature. For example, in the UK, the contactless payment limit was increased from £30 to £45 in April 2020. In the US, many banks and credit card companies have also increased their contactless payment limits.
So why are countries increasing their contactless payment limits? One reason is to encourage the use of contactless payments as a safer alternative to cash or traditional card payments. With contactless payments, there is no need for physical contact with surfaces or other people, reducing the risk of spreading COVID-19. Additionally, contactless payments are often faster than traditional card payments, making them a more convenient option for consumers.
Another reason for increasing contactless payment limits is to support small businesses. With many businesses struggling during the pandemic, increasing the contactless payment limit allows them to accept larger transactions without incurring additional fees for processing traditional card payments. This can help small businesses to stay afloat during these challenging times.
However, there are also concerns about the security of contactless payments, particularly with the increase in contactless payment limits. Without the need for a PIN or signature, there is a risk that someone could steal a contactless card and make large transactions without the owner’s knowledge. To address this concern, many banks and credit card companies have implemented additional security measures, such as requiring a PIN for larger transactions or limiting the number of consecutive contactless transactions that can be made before a PIN is required.
In conclusion, increasing contactless payment limits is becoming the new norm for quick and secure transactions. With the ongoing COVID-19 pandemic, contactless payments offer a safer and more convenient alternative to traditional payment methods. However, it is important to ensure that appropriate security measures are in place to protect consumers from fraud and theft. As contactless payments continue to grow in popularity, it is likely that we will see further increases in contactless payment limits in the future.
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- Source: Plato Data Intelligence.