One of the key challenges of Covid-19 is maintaining social distancing while ensuring customer access to goods and services. We are seeing retailers being inventive and resourceful, with food wholesale suppliers pivoting to home delivery services. We have also seen large supermarkets expanding their online footprint and constantly changing their stocking approach in stores to ensure key products are available to all.

Normally payments are the unseen part of retail. People have their preference - cash, card, digital payments - but their expectation is that the payment will happen seamlessly in the background, allowing them to focus on the goods or services they want to buy. Covid-19 has changed that focus. In-store, people are being asked to remain an appropriate distance not only from other customers but also from the staff at the till. Physical protective devices like plastic shields have helped maintain that distance, but there is also a focus on minimising contact in the payment method itself. While UK Finance supports choice in payment methods, we recognise that customers and staff will want to minimise contact, including with the PIN pad at payment tills. Contactless payments enable this and are also typically quicker than chip & PIN or cash payments, helping keep queues manageable.

For that reason, from today (1 April) the payments industry has made available the option for retailers to accept contactless payments up to £45. Contactless payments have long been seen as an easy, fast and secure way to pay for smaller items, whether in cafes, newsagents or supermarkets. With the focus now on minimising contact, this rise in the limit should help bring basket sizes within the targeted retail sectors - particularly supermarkets, pharmacies and petrol stations - within reach. The maximum limit of £45 is currently constrained by regulation on Strong Customer Authentication..

There have been several changes to the contactless limit since contactless cards were first launched in 2007, reflecting their growing popularity and wider retailer use cases - from £10 to £15 in 2010, to £20 in 2012 and up to £30 in 2015. Changes to the contactless limit are made in consultation with retailers, and by agreement from card issuers and schemes. Normally limit changes take several months to coordinate and implement, but UK Finance has coordinated this limit change quickly to help give retailers and customers more options at the till. As a result, we are likely to see a longer period of implementation of several months, as retailers balance this system change to tills against the need to keep their overall systems running as smoothly as possible.

Customers don't need to worry about making the choice before they get to the till. If the payment is above £45, the payment will default to chip & PIN. Retailers are also taking measures to disinfect PIN pads on a regular basis. Contactless card payments have the same protective measures against fraud as chip & PIN payments, and in addition from time to time customers will be asked to type in their PIN even if the amount is under £45. Customers can also use mobile devices to make contactless payments.