Back in the day, Barclaycard were the first to introduce contactless payment cards in 2004. It was touch and go (sorry, no pun intended) whether it will be a success. In 2016, over 58m transactions were made using the myriad of contactless payment vehicles, which now includes:
Doubtless, the convenience of contactless payments has enhanced consumer’s lives, especially since there is a limit of £30 per transaction to limit that person’s exposure. Yet with this protective measure, fraud has spiralled.
What is the trend?
According to data and research from Financial Fraud Action UK in 2016 2.7p for every £1 spent in 2016 is lost to contactless fraud, yet this a decrease from 3.6p per transaction in every £1 spent in 2015.
In our thoughts, this make contactless payments are no worse than those with made with Chip and Pin. However, we shouldn’t be complacent. There are consistent calls to increase the limit per transaction to £50, which is being resisted. The more available per transaction, the more the losses can tot up if a card falls into the wrong hands.
There are many benefits for business in the UK
For those B2B and B2C organisations that take payments, the availability of contactless payments adds another layer of efficiency. Yes, you’ll need to learn more about merchant services and being secure, but this will be negated with the loyalty and satisfaction your clients will enjoy.
There are now a number of merchants offering the technology, advice and training to help businesses grow. Surprisingly, there are still several big brands still to join the bandwagon in adding this technology; we’re sure they will come around to everyone’s way of thinking soon enough.
The HMRC provides a lot of advice for businesses, please visit https://www.gov.uk/ to bring yourself right up to speed.