The price limit on purchases made with Contactless Payment is set to rise from £15 to £20 this Friday.
The increase is in order to bring the UK into line with the 25 euro limit in the rest of Europe. It also comes just before the Post Office’s addition of Contactless Payment into all 11,500 of its branches.
Contactless Payment is seeking to supplant the current form of payment via chip and pin. This new form, as the name may suggest, requires no contact — the customer only needs to swipe their card over the pay point. The method of payment has take off especially in East Asia, where the chip usually found in bank cards has instead been transferred into objects such as watches and mobile phones.
This latter is currently being targeted by UK companies. O2 is already honing in on new forms of banking and transfers via mobiles and they are keen to utilise contactless payment, combining handsets with the chip to eradicate the need for a wallet.
The Post Office’s adoption of the system will make it the largest to do so in Europe. It seeks to have 200 branches around the 2012 Olympics sites running the payment method by June, and the rest of the branches around the country equipped by October.
The Post Office said that Mastercard PayPass and Visa payWave cards would be accepted for most products and services which can be paid for with a credit or debit card at present.
The only exceptions were purchases for more than £20, or those involving notes or cash, such as bureau de change transactions or when making bank withdrawals and deposits.
It said that the vast majority of purchases came to under £20.