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Lloyds: almost 9 in 10 card payments now contactless

Nearly nine in 10 in-person debit card purchases are now contactless, according to data from Lloyds Bank.

  13 3 comments

Lloyds: almost 9 in 10 card payments now contactless

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Spend on debit cards made in person using contactless technology has grown from 65% to 87% in the last three years.

The growth of contactless has been accelerated by the Covid-19 pandemic, which prompted the limit to rise from £30 to £45 and then again to £100.

Contactless is most popular in restaurants, where it is used for 93% of transactions and least popular in electrical stores (68% of transactions), where average purchase prices are high.

While tap and pay has proved highly popular, Lloyds says it has seen strong uptake for its feature allowing customers to set their own limit.

Since the feature was introduced in autumn 2021, 800,000 debit card customers have used it to freeze contactless payments, or choose an alternative limit. Over half of those setting their on limit have opted for one under £50.

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Comments: (3)

A Finextra member 

Is it a good thing that 90% of the said payments now take place without "strong customer authentication" i.e. PIN? This means that should a cardholder file a complaint, the issuer is legally obliged to pay back the funds within one banking day, unless the issuer claims that the cardholder did the payment and starts an investigation to find evidence on that. This since te contactless is an exemption from the strong custmer authentication rule implemented by and on the liability of the issuer. 

Robin Setty

Robin Setty Partnerships Lead for banking solutions at ACI Worldwide (EMEA) Limited

I'd like to know the breakdown between physical card and mobile device initiated transactions.  There's a signficiant difference in the security, as in the case of the latter, the transaction is authenticated by the account holder.

Hitesh Thakkar

Hitesh Thakkar Technology Evangelist (Financial Technology) at SME - Fintech startups (APAC and Africa)

Contactless was position as Frictionless payment experiene by biggies (pre COVID stage agenda was to sale frictionless for low value and later post COVID it is contactless as situation poised to support0 :)

We can clearly see users going back to less than 50 pound limit even though limit is increased.

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