Contactless card payment limit is increased

Shoppers will be able to make higher-value purchases using contactless cards from today after the limit for a single payment rose from £20 to £30.

Contactless payments for low value transactions were introduced in the UK in 2007, and currently there are 58 million contactless cards in the UK, with more than £2.5 billion spent using contactless cards in the first half of this year.

According to trade body the UK Cards Association, more contactless transactions took place during the first nine months of 2014 than the previous six years combined.

The technology enables customers to pay for goods with a single swipe of their card on a reader, without the need to sign or enter a personal identification number (PIN).

Although the £30 payment is being rolled out from today, not all retailers will offer the new limit from day one, as software updates will need to be made to payment terminals.

Richard Koch, head of policy at the UK Cards Association, said: "Consumers are increasingly choosing contactless as a way to pay and the new £30 limit will give shoppers and retailers even more opportunities."