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Where Are Contactless Payments Used the Most and Are They Secure?

 Many in the U.S., myself included, look with envy at other geographies such as Canada and the UK where contactless payments are a preferred way to pay. The opportunity to simply tap whatever payment form factor you may have to complete a transaction seems ultimately more convenient than swiping or dipping and hanging out at the point of sale for instructions. The Telegraph reviewed the environment for contactless in the UK and brings to light some interesting statics regarding the transaction type:
Contactless cards – a quick and simple way to pay for items of £30 and under – have radically changed the way we spend money, with a quarter of all card transactions now made via contactless.

According to the UK Cards Association (UKCA), overall contactless payments came to a total of £25 billion of spending in 2016, up from £7.75 billion in 2015. There are now 104.4m contactless cards in the UK, a 25% increase year on year.

Since contactless can only be used for transactions less than £30, similar to the $50 transaction limit in the US for transactions without a cardholder verification method, it’s not surprising then that retailers offering lower value products see the most contactless transactions:
In terms of where people used contactless payments, in 2015 almost half of all contactless transactions were in supermarkets and restaurants, followed by commuting and fast food. March 2017 figures showed a huge rise in contactless payments in other sectors too besides these, the top 5 being:

• Service stations (218%)
• Department stores (147%)
• Discount stores (120%)
• Supermarkets (114%)
• Hotels and motels (100%)

 Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

Read the full story here

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