Tipping (Price) Point for Contactless Payments

 In Industry Blog, Ronan Gallagher, Uncategorized
By Rónán Gallagher, Head of Product, Alpha Payments Cloud.
In Ireland contactless payments have been reasonably widely publicised, especially by VISA. However, I wonder if the price point is set high enough to encourage mass adoption. €15 is the maximum contactless payment in Ireland that doesn’t require a PIN. In the UK, at least based on signage I saw in a shop last week, it is £20 (approx. €25). In Australia, where PIN is being mandated from later this year, contactless payments can be made upto 100 AUD (approx. €70) without requiring a signature or PIN.
Australia, according to MasterCard, is the largest Paypass market in the world, 43% of Australians are paying using contactless and 60% of scheme debit transactions are made using contactless.
Of course, issuers determine the level of risk they are willing to accept but I wonder if the maximum contactless payment were to be increased in Ireland would more consumers opt to ‘Tap and Go’. Perhaps a good example is Aldi, the supermarket chain. They have had quiet visible signage in stores about accepting contactless payments. However, not once has my basket cost less than €15 and I wonder how many transactions they process under that amount. Lidl also offer contactless payments and even have a link on their website publicising the fact.
Although it is a bit of a moot point for me at the minute as I switched banks earlier this year and my new bank does not support contactless on my debit card, at least not yet.

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