Time to raise the contactless limit? 42% of regular users think so

New research* reveals that 42% of contactless payment users would like to see the limit for transactions increased, with of them 38% saying it could be £50 or higher, while 9% would like to be able to make payments of £100 or more.

Currently, individual contactless card transactions are limited to £30 but research commissioned by GoCompare Money, found that many users want the figure to rise to enable them to pay for a wider range of goods and services.   

The research found the supermarket is the most popular place for contactless payments with groceries accounting for 79% of transactions.  Other common everyday contactless purchases include coffee, tea and other beverages (48%), snacks (46%), drinks in pubs and clubs (39%), clothes and accessories (38%) restaurant meals (36%) and transport fares (30%).

Contactless technology gives shoppers a fast and easy way to pay without having to fish around in their wallet or purse for cash or tap in their PIN every time they use their card.  Most users (73%) find it more convenient than traditional forms of payment. 

However, GoCompare Money is warning that a potentially toxic mix of growing contactless payments coupled with the rapid demise in paper current account statements is causing some people to lose track of their spending.

Most contactless users (74%) say that they also now receive paperless statements through an app or online banking, only 26% said they receive paper bank statements.  The research revealed that for some people (17%) using tap-to-pay leads them to lose track of their spending: 

• 13% of users said they worry the new technology leads them to spend more than they intended;
• 12% said it had increased their number of impulse purchases;
• 8% of users admitted to not associating contactless payments with real money.          

Commenting on the research, Georgie Frost, consumer advocate at GoCompare Money said, “Since the introduction of contactless cards in 2007, the speed and ease of their use has seen millions of us embrace the technology for day-to-day shopping.  But, from our research it’s clear that simply waving a card or smartphone over a payment reader leaves some people disassociated from the money they’re spending and can lead them to make more impulse purchases.  Even with a payment limit capped at £30 - frequent, unmindful spending can quickly add-up and it’s all too easy to spend more than you realise.

“No matter whether you use contactless payments, traditional cards or cash, it’s really important to keep on top of your finances by checking your bank and card statements regularly.  It’s also sensible to check though the payments on your statement to make sure payments haven’t been fraudulently taken.

“Retailers don’t automatically issue receipts for contactless transactions, however, you can always ask for one.  Keeping receipts will not only help you keep track of your spending but will enable to you check whether you have been correctly charged.   

“While technology makes it easier to spend money it can also make it easier to keep abreast of your spending.  There are several apps available which help you budget, track and analyse your spending.”              

For more information on contactless payments visit: https://www.gocompare.com/credit-cards/contactless-payments/

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For further information please contact:

Anders Nilsson or Martyn John at GoCompare on 01633 654 054 / 01633 654 725

Gordon, Jason or Liz at MAW Communications on 01603 505 845

Keep up-to-date with GoCompare on Twitter; @GoCompare

Notes to editors

*On 20 July 2018, Bilendi conducted an online survey among 2,004 randomly selected British adults who are Maximiles UK panelists.  The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.

About GoCompare

GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.

GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. Gocompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.

GoCompare does not sell its customers’ data.

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).

For more information visit www.gocompare.com and www.gocomparegroup.com