Following the news that the UK is raising the cash limit available via contactless payment from £30 to £45, Thomas Brereton, Retail Analyst at GlobalData, a leading data and analytics company, offers his view on the situation:
“This rise in the contactless limit will be broadly welcomed by the supermarkets, as it allows grocers to move relevant shoppers through the payment process slightly quicker and help ease congestion strain caused by staggered entry. Several supermarkets – including Aldi and Waitrose – have been quick to implement the new changes at their respective businesses within 24 hours of the new legislation.
“But to avoid confusing customers that may shop at different locations, grocers that have not implemented this contactless rise yet, need to do so as quickly as possible. While it risks only adding seconds onto individual shopper journeys, further disruption to consumer shopping habits for essentials may irritate buyers and lead to increased switching between retailers, particularly given the preference for shoppers to use contactless methods for payments during the COVID-19 pandemic.”