The limit on contactless payments has risen in the UK from £20 to £30, meaning users of phone-based payment services such as Apple Pay will be able to make higher transactions.
The UK Cards Association, which decided to increase the limit, says it will cover common charges such as shopping in a local supermarket, as well as payments in pubs, cafes and cinemas.
According to The UK Cards Association, more than £2.5 billion was spent using contactless cards in the first half of 2015, so the limit change seems practical now that contactless payments are increasing.
Now that the limit has risen to £30, and with more and more consumers using contactless payment services, those figures can only continue to rise further.
Currently, Apple Pay has no limit in the US, and first launched in the UK in July this year with a limit of £20. But will this limit rise even further, beyond £30, in the UK? For now it looks unlikely as the limit has been put in place to help prevent fraud and theft if a card or phone is stolen.
Kevin Jenkins, MD for UK and Ireland at Visa Europe, said: “Contactless is becoming the ‘new normal’ as everyday Britons embrace the speed, convenience and safety of touch-to-pay technology.
“We’ve seen unprecedented growth in this area, with the number of Visa contactless transactions more than trebling in the past year in the UK. Today’s threshold increase to £30 gives consumers all the benefits of contactless across a broader range of their daily activities, and we expect to see this momentum continue to build as more people adopt mobile and wearable payment technology.”
But will this cap make a difference to retailers and businesses? £30 will not allow consumers to purchase a laptop or PC, but they will be able to get their hands on cheap peripherals like mouse mats and keyboards.
Until this limit increase to over £100, perhaps only then will retailers notice the benefits of contactless payments.
Dixons Carphone previously told PCR it won't offer contactless payment options as the cap is currently too low.
In other Apple news, the company is expected to unveil its latest iPhone at an event in September.
Taking place on September 9th, the iPhone 6S and iPhone 6 Plus S will allegedly be on show.
In addition, Apple and Cisco have partnered to create a fast lane for iOS business users by optimising Cisco networks for iOS devices and apps. The partnership will see Apple’s iPhone smartphones integrate with Cisco enterprise environments to help provide collaboration with iPhones and iPads.
Lastly, Apple is reportedly in talks to produce its own programming service, rivalling the likes of Amazon Prime.
According to Variety magazine, Apple is looking to start hiring for a new development and production division, which will produce content similar to other streaming services.
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