Contactless payments have become the go-to way to pay in the UK, making everyday transactions quicker and easier. In fact, they now account for 38% of all payments, with people of all ages tapping to pay – even 80% of those aged 85-95!
Whether you're grabbing a coffee, hopping on the bus, or paying for your weekly shop, contactless payments save time at the till. But how do they work, and how can you keep your payments secure? Let’s dive in.
Contactless payment allows you to pay for items by simply holding your contactless card or device over a payment terminal. Using near-field communication (NFC) wireless technology, no physical contact is needed. Most places, including public transport systems, accept contactless payments. You don’t need to use your PIN, making it both convenient and quick.
This is the symbol for contactless payments (which can be found on your card, the payment terminal and on the signs in the shop):
Contactless payments are also known as “tap and go.”
Contactless payments arrived in the UK in 2007, with Barclaycard launching the first tap-to-pay card. At first, the limit was just £10, but as more people started using it—especially after Transport for London added contactless in 2014—the limit increased. It went up to £45 in 2020 and £100 in 2021.
There are several ways to make contactless payments:
Contactless payments can take a few working days to show up on your statement, so keep an eye on your spending to avoid surprises.
Wondering how much you can spend with contactless? The UK limit is £100 per transaction. However, for security reasons, some card providers may require you to enter your PIN after multiple transactions in a row.
Some banks allow you to set your own contactless limit between £30-100, and others give you the option to turn off contactless payments altogether. For transactions above the limit, you'll need to enter your PIN.
If you use a contact-enabled device like your phone, there’s no contactless spending limit, but you'll always need to authenticate transactions with a fingerprint, passcode or facial recognition.
Most cards already have the contactless facility. If yours doesn't, contact your bank to request one. Smartphones and devices need to support NFC payments to pay by contactless.
If you prefer not to have a contactless card, speak to your bank - while most now provide contactless by default, some still offer Chip and PIN only cards.
Contactless cards are secure and subject to the same fraud prevention measures as Chip and PIN cards. Contactless signals shouldn’t transmit beyond 10cm, but if you're concerned about accidental or fraudulent scanning, you can buy cardholders and wallets that block the signal.
If you lose your card, notify your bank immediately to cancel it. Many banks also allow you to freeze your card via mobile banking apps while you look for it.
For mobile payments:
Want to learn more about keeping your money safe? Check out our guide on credit card fraud.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
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