Supermarkets must implement contactless payments limit rise asap

UK supermarkets need to quickly introduce the new £45 contactless limit to reduce customer safety concerns amid the coronavirus outbreak, according to GlobalData.

Morrisons went live today as part of its move to reduce the use of cash during the coronavirus pandemic.

Aldi and Waitrose were also quick to implement the change. But other supermarkets have yet to get onboard due to the fact that they are currently operating at peak capacity.

“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,” says Thomas Brereton, Retail Analyst at GlobalData.

“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 shopping habits for essentials may irritate buyers and lead to increased switching between retailers, he argues, particularly given the preference for consumers to use contactless methods for payments in these surreal times.

In defence of cash

Raising the contactless card limit will be helpful for those shoppers and retailers who may want to handle less cash right now. But, stresses Gareth Shaw, Head of Money at Which?, it's also vital that vulnerable people do not end up without a way to pay for essential products and services.

"Both the government and retailers need to find a way to ensure that the millions of people who rely on cash, and may not have a bank card, can still pay for the basics they need during this difficult time,” he says.